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GRAINCO F.S. Comments. 05/21/13 3:38:25 PM
Tuesday, May 21, 2013
CORN
It ended up being a strange trading day for corn as the old crop weakened while the new crop tried to firm near the close. This is opposite of what most would expect with the higher than expected planting progress more of a new crop story. Either way, Dec. corn did set a new recent low today before recovering to close at unchanged. The lack of producer selling and firming processor basis did little to support old crop today. Some old crop/new crop spread unwinding and general fund liquidation was noted today. Corn planting progress was estimated at 71% through Sunday, which was higher than expectations. This is a 43% jump from last week, and equates to roughly 42 Mln. acres of corn planted. This is a record for one week. Illinois is at 74% planted, up 57% from last week. Iowa was up 56% to 71% complete. Some would argue, however, that these numbers may still be a little low. The weather forecasts remain favorable over the next couple of weeks. Temps will cool down slightly near the end of the week with additional chances of rain early next week. Temps then warm up again into the middle of next week. Overall, it looks pretty good for crop growth. Corn is 19% emerged (46% avg.), but should catch up pretty quickly over the next few days. Ethanol numbers will be out tomorrow. With most of the planting delay concerns behind, rallies in the corn market look to be hard to come by without any return of adverse weather.
BEANS
The old crop soybeans continue to distance themselves from the new crop. Producer movement remains slow, and cash movement is also limited. However, processor basis and river basis has been mostly weaker this week. New crop beans were unable to recover like corn was as the weather forecasts suggest an active planting pace for beans over the next few days. Soybeans were 24% planted, which is behind the average of 42%. Last week, beans were 6% planted. Illinois was 19% planted and Iowa was 16% done. The bean story is expected to remain one of old crop versus new crop.
Winter wheat ratings were down 1% to 32% good to excellent. Winter wheat is now 43% headed, compared to the average of 62%. Spring wheat is 67% planted and 22% emerged.
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