Commodity Comments: 

4/2/22

To no one's surprise - the Crop Progress Report was released today with not much progress. Corn is sitting at 7% planted, soybeans at 3% and spring wheat at 13%.  The 10 day forecast doesn't appear to have much of a warm-up built into it either. 

The trade limits will be expanded starting next week.  Corn will be $0.50, wheat at $0.60 and beans will be $1.15.

Crude was off today and closed under $100/barrel. The downside in oil seems to be because of lockdowns still happening in China. 

Corn started weaker on the day but managed to rally going in to the close.  Planting over the next couple of weeks will tell us the direction that the corn market will probably head.  

A sale to China of 66,000 tons wasn't enough for the beans to close on the positive side today. China announced that they will auction off another 500,000 metric tons of beans on April 29th.  (Yes, they bought and are planning a sale in the same week)  The last auction sold roughly 80% of the 500 MT that was offered.  The oilseed market probably was the main reason behind today's selloff as it was quite a bit weaker.

Wheat traded on both sides of even today. Canadian wheat acres are estimated to be up around 600,000 acres versus last year.  

If you ever have any questions regarding the different types of contracts that JVG offers, please give us a call.  We have cash, futures fixed, Minimum Price, and Basis Fixed available.  Also, if you hear of different kinds of contracts that you may be interested, let us know.   

 

Tiffany Heier