This week’s USDA planting report was pretty positive for corn and soybeans with plenty of bullish surprises in the acreage numbers.
Can that market momentum hold as we start a new trading week on Monday? It all depends on the weather at this point, says Wayne Nelson of L&M Commodities in New Market, Indiana. Many growing areas in the U.S. are expected to be wet during the next 10-14 days. In South America, Argentina has not had good rain but many areas of Brazil are receiving adequate rainfall.
“We are going to see if Brazil can make up the difference of what they lost in Argentina,” Nelson said.
One negative from the USDA report was a bigger than expected stocks number, but the acreage factor highly overshadowed that. Also, a potential positive factor for soybeans is the reduction of around 100,000 acres in Iowa.
“If you take them out of the high per acre producing states, that also gives you a little better feeling that maybe that could draw the average yield down a little bit too,” Nelson added.