The recovery in ag grains entered Day 2 with little upside enthusiasm. In outside markets, US dollar crude oil and equities turning higher.
The weather forecasts proved true in the S Plains as 1.5 to 3.0 inches of rain rolled across the region yesterday and will finish up today. Another system is expected starting this weekend and extending into next week to bring more rains. Two additional slow-moving low systems are expected to come out of the southern Rockies and into the southern Plains and Midwest. These storm systems should have ample rainfall totals across core winter wheat and spring crop regions of the southern Plains & the Midwest into mid-April. Many of these areas are in need of precipitation, so this active pattern should benefit wheat as well as soils ahead of corn and soybean plantings.
The trade action in grains will likely be listless leading up to Friday’s crop report. polls are out on expectations for the March 31 planting report. On average, analysts look for corn acres of 90.9 million vs 94.0 last year and soy plantings of 88.2 as compared to 83.4 in 2016. All wheat acres in the US are expected to slip to 46.1 from 50.2 last year.
Oil World on Tuesday pegged Brazil’s soybean crop at 108.5 MMT of production and at least 61.4 MMT of soybean exports during 2017. These are slightly higher than USDA figures of 108.0 and 61.0, respectively.
Data on US crude oil inventories from government forecaster EIA will be widely watched this morning at 9:30 CDT. Analysts expect crude stocks to grow by 1.36 million barrels on the week. Last week, stocks ballooned 4.95 million barrels. API data from yesterday showed a 1.9 million barrel increase in stocks.
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