Corn and soybean markets are trading neutral to slightly firmer on this rainy Tuesday morning. Yesterday’s crop progress report showed few surprises. The USDA says corn is 15% planted while trade estimated 14% and we were at just 6% last week. We are dragging behind the five-year average of 27%. Soybeans are said to be 3% planted vs. 1% last week and a five-year average of 6%. US Winter wheat conditions are said to be 64% good/excellent compared to 62% last week.
Weather has not been very conducive to getting spring fieldwork and planting complete. The Midwest is set to see a rain system move in today and tomorrow, covering a chunk of the corn belt. It should dry up by the weekend, but the forecast shows another system moving in late Monday. Below average temps aren’t helping to dry up the moisture, but it’s expected to warm up this weekend.
The local farmer is holding tight to their old crop corn supply as they hope that some sort of bounce happens in the next month or two. Corn basis has stayed firm, but that still leaves the farmer less than excited about the flat price. Old crop bean carryout is still weighing on markets, and with a wet spring, it’s likely that late acres will switch to beans.
While it certainly has not been an exciting start to 2019 when it comes to marketing, now is the time to take a look at your marketing plan and make some updates to your target orders and sales goals. Remember to continue to be proactive in marketing, so opportunities don’t slip away from you.
As always, give us a call if we can help!