Grains were in positive territory to start the week led by soybeans. In outside markets, crude oil was also showing impressive gains, hitting its highest mark in a month.
Rains over the weekend in Argentina came in heavier than expected with widespread coverage of 1 to 2 inches on waterlogged soils. Some areas saw as high as 7 inches in Buenos Aires. This will continue to hamper the soy harvest there as well as lead to quality concerns.
In the US, weather continues to lean to the wet side. Rain is expected regularly this week over the Midwest with totals of 0.5-1.5 inches expected in the ECB and 0.75-2.5 in the WCB. The frequency of the rains will be more of a problem than the amounts as rain is expected every 2 to 3 days. Heading into the 2nd week of the forecast; rains are expected to intensify in the Upper Midwest with totals of 1-3 inches which could stall in planting progress by April 23.
In international news, Malaysian palm oil hit a 6-month low. Data from the Malaysian Palm Oil Board showed ending stocks for March rose 6.5% on the month to 1.55 MMT, outpacing market expectations.
Tomorrow, the USDA will release their monthly crop report. Modest gains in US carry-outs are expected after higher than expected quarterly stocks figures released March 31. Traders will eagerly watch South America production with expectations for a big bump in Brazil corn/soy estimates and only a modest uptick expected in the Argentine production numbers.
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