- Today’s firmer opening prices gave way to lower levels this afternoon as the soybean complex led markets down. Markets would appear to have had difficulty in digesting FSA data and how the USDA’a NASS (National Agricultural Statistics Service) is likely to interpret the data.
- The 2013 prevented corn planting figure was reported as 3.573 million acres with overall plantings including failed acreage at 91.428 million. Soybean 2013 prevented planting acres were reported at 1.687 million acres with overall planting including failed acre at 74.659 million acres. Initial reactions suggested that a bullish soybean market could see the $14/bu price level being retested although this has not followed through in today’s market.
- US weather has seen more rain falling and forecast, which is splitting opinion as to whether it is too late or whether it will benefit the soybean (and corn) crop given the late development and harvest. If nothing else, the “gap lower” on yesterday’s opening prices has been followed through in today’s market. It appears that the bulls have little in the way of fresh news to feed them and, as we all know, an unfed bull tends to lead to declining prices!
- In other news today, Oil World reported their forecast for record global rapeseed output at 70 million mt based upon higher Canadian and EU production. Global sunflower seed is also forecast higher at 40.2 million mt, a 13% increase year on year, with Russian and Ukraine output accounting for 18.6 million mt. Global palm oil production was forecast to grow to 58.85 million mt, an increase of nearly 2.8 million mt. Finally, Brazilian soybean plantings are slower in Mato Grosso as farmers await rains but a record area is still forecast and farmers want to plant as soon as possible in order to get the follow on corn crop into the ground.