The quinoa, kale and gasless cow crowd might be getting their wish as we’ve wiped out a lot of calves in the West and the soggy soil might delay corn plantings. Might equate to more quinoa acres planted and kale might take over as ditch weed. I don’t know if anyone wins in this scenario?
Trade agreements and a lot of growing season to come might be two of the most important factors allowing for a bounce in the grains the past few sessions. The stocks and acreage reports on Friday could be the last of the bearish news until we get to harvest. Wheat comes first and it’ll be interesting following basis levels in June/July/August as millers might be willing to pay a little higher than historically normal. Spreads have been screaming that quality has been a concern and we are in desperate need of a decent to excellent harvest. And, it’s a long time until we get past the first frost in the Fall and wrap up the corn and bean crops for this year. It still appears to be a buyer’s market for old crop corn and beans and normal weather from now until Fall might bring us another bountiful harvest which might mean storage tightness and weaker basis levels for new crop. There’s no substitute for assuming normal conditions and tweaking yield potential every day with abnormal weather.
Crop report on Tuesday and the USDA will issue Supply/Demand estimates and some fresh World production figures. It’ll give us something to talk about besides the weather and trade deals.
The information contained on this site is the opinion of the writer and obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in current market prices.
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