Yesterday’s USDA report had corn prospective acres at an astonishing 96.99 million acres, well above the average estimate of 94 million. Corn quarterly stocks came in at 7.953 billion bushels, towards the low end of estimates.
May corn continue to grind higher yesterday, despite news that two more ethanol plants will be closing, due to negative margins. Export sales this morning came in at a whopping 1,814,300 for old crop corn.
Cocoa futures have been weakened by demand and the global equity markets. As the US and European markets moved higher for back to back sessions for the first time since February, cocoa tried to bounce off a potential bottom in the May contract.
May soybeans extended their rally yesterday on the back of hopes for better demand and potential port disruptions in South America. The market is giving back some of those gains in the early morning trade.
Outside markets will continue to have a bearing on the grain sector, if we can avoid the limit down days and peak panic environment like we saw yesterday, we think the market can focus back on its own fundamentals.