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Weekly Grain Market Recap 3/13-3/17

Mar 17, 2017
Grains with a mostly sideways trading pattern this week as the markets prepare to deal with the USDA telling us what the U.S. farmer intends to plant this year. With a better understanding of what we are dealing with in terms of a current global market picture, farmers will head to the fields in a rather challenging time. 

The corn market saw some interesting news this week with reports surfacing that China purchased 3 shipments of U.S. corn for delivery later this year. With China holding what is believed to be around 50% of the world's corn stocks, it is rather interesting that they would make the largest spot purchase of U.S. corn since 2013. There are many theories about what exactly is the reason for this, but with the recent bird flu outbreak there (the largest since 2009) there are a lot of raised eyebrows across the world's corn growers.

The slow bleed of soybean prices lower continued this week. The market continues to hang on by a thread of support with a all eyes on planting intentions. As the price continues to drift lower, questions are mounting on whether or not the "intentions" will eventually line up with the actual planted acres. Even more interesting is NOAA's April outlook and the 4-6 week weather outlook. The early forecasts are looking rather wet. Planting delay talk has already heated up and it's only March.

Wheat continues to just tread water after a February run-up after hovering around historically low prices for much of late 2016. News out this week indicated 15% of the plains wheat crop that has already come out of dormancy may have been damaged by the recent deep freeze. Acreage estimates for Spring wheat continue to trend lower and the thought of winter wheat acres becoming soybeans or other crops is still on the minds of many.  It is clear that U.S. production will be down, but will it be enough to significantly alter our current supply and demand picture? That is the question for all grains moving forward. 

-- -- Disclaimer: The data and comments above are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Commodity trading involves risks, and you should fully understand those risks before trading.


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