Monday May 17th, 2010

Corn futures stumbled Monday, settling at a 3-week low, continuing a retracement of prior gains on pressure from a stronger U.S. dollar and bearish near term crop weather. The theme was consistent across most commodity markets in reaction to lingering European economic fears. In the absence of fresh supportive news, outside markets served as the focal point for price direction, with beneficial weather for spring planting and crop development adding to lower tone. USDA pegged corn planting at 87% complete with conditions rated at 67% good to excellent, the market was looking for around 90% complete with conditions near 85% complete.

Soybeans followed along with corn as lack of news and negative outside markets sent things lower. Soybean plantings came in at 38% tonight, the market was expecting soybeans to be 45% complete tonight.

Chris Spurlock