Planting delays in corn are first and foremost on the trades mind. The trade is well aware of the present rain system and two more on the way before the end of next week for the major Midwest. The trade is under the perception corn yields are expected to begin declining after May 15th. Allendale's research suggests yields are already in decline mode and have adjusted its 2008-09 corn yield from 155.28 bushels per acre, down to 152.4 bpa in front of USDA's WASDE report, scheduled for release on May 9th at 7:30 am central time. On the Wednesday it is estimated funds bout 7,000 contracts of corn.
In soybean news, the headlines from major news wires before the close on Wednesday read "Argentina strike imminent". The cliff note version is what US news wires are reporting (warm and fuzzy) are misleading. Argentine news wires have and continue to suggest, the government will not bend on the sliding tax scale for soybean exports. Farmers will return to strike (no roadblocks and not sell any grain until May 15). World demand for soybeans is expected to focus more heavily on Brazil and then US supplies.
The Kansas Wheat Quality Council Tour was anticipating poor yields in the west when surveyed on Wednesday. Two of three regions found better than expected yields. The tour will end on Thursday and will then arrive at an estimated yield for the state of Kansas. In the big picture, world growers are expected to increase 2008/09 world-ending stocks by a minimum of 14 million tonnes. USDA will provide its first official estimate in Friday's WASDE report.
|
|
|