Morning Commentary

May corn up 3 ½ at $3.795

May beans down 2 ¾ at $9.0775

The DOW is down

USD is stronger

Crude oil down $.79 at $59.19

Good morning,

Corn prices are higher this morning and on the week following massive flooding in key U.S. production areas. It feels like a few more bears have moved to the sideline and a few more weather bulls have jumped in the game. There was a report circulating yesterday that Iowa had over +100,000 acres underwater. There has been some rumors that the Chinese might step in and buy U.S. corn in a bigger fashion in late-April or May. The trade will also be eager to see the USDA’s quarterly stocks and acreage estimates scheduled for release next Friday. Most seem to be looking for a sizable reduction in stocks compared to last year, but still probably one of our third largest ever. Don’t forget, we are also staring at significantly more corn being harvested in South America in 2019 and more holes being shot in U.S. demand growth.

Soybeans prices have rallied back +30 cents from the mid-March lows and seem content trading in their current channel. New-crop NOV19 prices between $9.25 and $9.65 per bushel. old-crop JUL19 prices between $9.00 and $9.50. All eyes remains on U.S. and Chinese trade talks. Perhaps we will learn more next week when U.S. trade representative head back to China for another round of negotiations? From a fundamental perspective, bears continue to point massive domestic supply.

Ag giant Monsanto has requested federal approval to sell the herbicide dicamba for use on GMO corn. Over the past two years, dicamba drifting from fields of Monsanto’s GMO soybeans and cotton has damaged crops, gardens, wild plants and trees on a large scale. Many are concerned at the prospect of dicamba being widely sprayed on America’s largest-acreage crop, corn.

Following allegations that the rival brewer’s ad campaign associating Miller Lite and Coors Light with corn syrup is false and misleading, MillerCoors LLC filed a lawsuit. You’ll remember, the dispute began when AB InBev ran several ads during the Super Bowl pointing out that Miller Lite and Coors Light use corn syrup in their brewing processes. It continued after the game, including on billboards describing Bud Light as having “100 percent less corn syrup” than either competing brand. I’m told MillerCoors is seeking an order barring Bud Light from repeating corn-syrup claims against Coors Light or Miller Lite and compelling Bud Light to run “corrective” advertising. (Source: Marketwatch)


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