The overnight markets were lower after earlier gains in the evening. This morning the AG markets once again put on a mixed performance. The market ended flat after a choppy day. Nearby corn closed down at $3.70 and soybeans closed at $9.54. Futures across the boards posted modest gains and losses. CZ0 closed at $4.07 and SX0 closed at $9.38. There has been talk that South American soybean crop may have been underestimated. The USDA estimates Argentina production at 53mmt while some sources are estimating the soybean crop between 55mmt and 57mmt. Brazil estimates have remained unchanged at a range of 65-67mmt. Regardless, South American crop is looking stellar and may have a soybean crop in excess of 4.5bbu.
Corn CIF values have fallen 2% from last week. CIF is offering +.37 over CK and +.57 over SK. Our weather forecast for N. Illinois looks relatively quite for the remainder of the week. Surprisingly we are going to be seeing the temperatures climb into the 40's by Friday.
One thing that stands out is the likelihood of a substantial increase in corn acreage across the far eastern and far western Corn Belt. A wet spring is not good for gaining corn acreage, but it certainly plays into the hands of gaining bean acreage. We have also heard of reports that container volumes may decline through the summer as freight rates head to higher ground. Ethanol markets seem to be well supplied as corn basis has slipped some. Soybean basis has mostly stalled at the processor as last week's flat price rally moved soybeans into the pipeline.
Have a good week!
Nathaniel Dubravec
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