Headlines:

  • WASDE report out next Tuesday at noon est
  • The US Dollar continues to rally breaking back above par sending gold futures lower
  • Soybean futures lead grains higher
    Soybean futures ended a long losing streak, finding support on ideas that Argentine rains are threatening a re-run of last season, where many acres were lost to flooding, while corn gained on US planting delays, with wheat following higher as well. “Rains in Argentina forecast for the next week for southern regions are starting to raise concerns of a repeat to last season’s flooding that reduced Argentine soybean production and caused quality problems,” said Kim Rugel, at Benson Quinn Commodities. “Rains over the weekend in the core production regions of Argentina continue to delay the early soybean and corn harvests,” said analyst Dr. Michael Cordonnier. “Unfortunately, there is more rainfall in the forecast as another frontal system sweeps across central Argentina in the coming days,” he said, adding that “the anticipated rain will result in even more harvest delays”.
  • Argentine flooding deja-vu supports soybean prices
    Soybean futures bounced from one-year lows, with corn prices also higher, on ideas that the Argentine harvest might be delayed by rains, raising fears of a rerun of last year’s washed out harvest. “Rains over the weekend in the core production regions of Argentina continue to delay the early soybean and corn harvests,” said analyst Dr. Michael Cordonnier. According to the Rosario Stock Exchange, only 8% of soybeans in the main producing region have been harvested, compared to 21% a year ago. Across the country, only 2% of soybeans have been harvested, compared to about 8% a year ago, according the Buenos Aires Grain Exchange. The corn harvest is likewise lagging a touch, at 11%, compared to 13% a year ago.

Summary:

After hitting multi-month lows, Beans really off of being oversold and on some short covering. Forecasts for heavy rain and flooding in parts of Argentina also aided in support prices but conditions in Brazil are still favorable for Bean crops. Analyst estimate have breach 113 million tons with Celeres calling for 113.8 million tons. Soybean meal and oil were also higher today. Corn sold today rising about 1.50 cents. Celeres’ Corn estimate for Brazil’s crop at 97.5 million tons was unchanged. The potential for weather delays in the Midwest have also kept the market on notice. The Wheat complex was also slightly higher moving up only about 1.50 cent as well. Even if Wheat is able to rally a bit from current levels it looks to continue to have trouble with sustainability. Weekly crop progress and condition numbers for Wheat are scheduled for release on April 10th at 4 PM EST.