- Markets in Chicago opened mixed with little change although wheat has faltered and turned lower as the session progressed. Wheat, the driver of lower levels, eased on calls for more extended precipitation across the W Plains later in March and also on falling global cash prices. Matif and London wheat markets looks to be closing lower, as would be expected, and cash values are lower as Russian farmers are becoming ever more aggressive following Rouble weakness. The EU market has displayed weakness despite improved export demand and now focus is shifting to new crop production potential, which is looking solid across Europe and Black Sea regions.
- Informa Economics has updated its new crop US acreage estimates with corn at 90.8 million acres, compared with 90.5 in January and vs. the USDA Outlook Forum figure of 90.2. Soybeans are forecast at 88.7 million acres, fractionally higher than the January figure and compares with the USDA Forum’s 88 million. The all wheat area is forecast at 45.6 million acres vs. 45.8 in January and the Forum’s 46 million. Normal planting weather could see the total seeded acreage a touch higher, particularly given the boost in crop insurance prices.
- Managed funds need a bullish input if they are to continue buying commodities or raw materials, and may await NASS’s planting intentions report or any hint of adverse weather in the spring or summer before doing so. Meanwhile focus will switch to S American crop size and how much, and how soon, major importer demand shifts to the S Hemisphere between now and late summer.