CORN futures on the Chicago Board of Trade (CBOT) finished up on Monday. The MAY’11 contract closed at $7.624 up 25.25¢/bu and 10.75¢/bu over last week at this time. The DEC’11 contract closed at $6.814; up 16.0¢/bu and 13.25¢/bu higher than last report. Excessive wet weather delaying planting in the U.S. Midwest and bullish speculators were supportive while exports were neutral to bearish due to high U.S. corn prices. Heavy rains and storms in the eastern and southern U.S. Midwest crop areas look to cause flooding and hold corn planting progress. Corn yields are reduced the later planting is held off. Planting after May 15 is considered late planting. USDA put the U.S. corn crop at 9% planted as of Monday, April 24, 2011. This number will most likely make the bulls run as it compares to a 23% five-year planting average, 46% planted this time last year, and a 13% average of trader estimates. Funds were net buyers of an estimated 13,000 lots. USDA placed corn-inspected-for-export at 33.235 mi bu; 5.36 mi bu lower than last week and lower than estimates ranging from 34-38 mi bu. Fundamentals remain bullish for corn.
SOYBEAN futures on the Chicago Board of Trade (CBOT) finished mixed on Monday with nearby futures gainers and deferreds losing some price value. The MAY’11 contract closed at $13.894/bu; up 9.0¢/bu and 45.25¢/bu higher than last Monday. NOV’11 soybean futures closed even with last Friday’s close at $13.824/bu but 33.25¢/bu over last report. Higher corn and wheat prices had a spillover effect on soybean futures. The soybean harvest is nearly complete in South America, so soy traders are turning their attention to the U.S. Midwest and Delta weather patterns. Wet weather in the Corn Belt is delaying field work and slowing early plantings. USDA won’t publish the soybean planting progress report until next week. Brazil announced it was harvesting a record 70.56 mi tonne (2.59 bi bu) soybean crop vs. last year’s 68.5 mi tonnes (2.52 bi bu) aided by good harvest weather. Argentina’s soybean harvest is proceeding rapidly in spite of rains plaguing some harvest areas. Argentina’s Agriculture Ministry increased its 2010/11 soybean harvest forecast to 50.4 mi tonnes (1.85 bi bu) from 50.0 mi tonnes (1.84 bi bu). Argentina is also the world’s largest exporter of soyoil and soybean meal. As of last Thursday the Argentinean government reported its soybean crop 52% harvested vs. 50% harvested this time last year. Funds were net buyers of 4,000 soybean futures contracts. Below is a graph of Argentinean soybean/corn production courtesy Reuters.