Weather Expected to Turn Favorable to Planting in Midwest
Grains Up in the Overnight
Wheat trades higher on less than expected rains in KCBT region. Parts of S. Brazil corn are dry. U.S. Secretary Treasury considers trip to China. Weather expected to turn favorable to planting in Midwest.
Rain is expected in the southern and eastern part of Midwest today and tomorrow, but outlook is mostly dry and warmer the remainder of the week. The 6-10 day weather outlook shows dry and warmer weather which will allow for rapid fieldwork. KCBT wheat is trading higher this morning after precipitation this weekend was not as widespread and heavy as forecasted. Precipitation fell across KS, OK and Northern and Eastern TX over the last 48 hours with the heaviest precipitation (1”-2”) falling in S. Central KS and N. Central OK. The driest areas of the KCBT wheat received only light rain over the weekend and will need follow up precipitation.
South American Weather
Some parts of southern Brazil haven’t received rain for two weeks. Driest areas in Parana and parts of Mato Grosso do Sul and Sao Paulo. No damage has been reported yet, but crop is in a vulnerable period with 40% in the reproductive phase. No rains are in the forecast until the end of April.
Commitment of Traders- Week ending April 17th
Long corn positions held by speculators declined by 45,013 to 161,932 contracts. Long soybean positions held by speculators increased 14,213 to 156,510 contracts. Short wheat positions held by speculators increased by 5,063 to 63,277 contracts.
U.S. Treasury Secretary Considers Trip to China
On Saturday, U.S. Treasury Secretary Steve Mnuchin said he is having discussions with China to resolve the differences of opinion in trade policy and that he is considering a trip there to continue discussions. Mnuchin declined to comment on the trips timing, but it would be seen as an effort to calm tensions that have been building recently. On Sunday, China’s commerce ministry said they welcome U.S officials to discuss trade and economic issues.
Cattle on Feed Within Trade Expectations
All Cattle on Feed was within trade expectations at 107 percent of LY. March placements were 91 percent of LY compared to a trade est. of 90.3%. Marketed cattle was 96 percent of LY compared to a trade est. of 95.9%. Reaction to the report should be minimal on Monday. Traders will focus on growing fat cattle supplies as we move into seasonally strong spring demand as weather warms.
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