Oil prices have moved up this week. This resulted in a comeback with beans and corn following. Monday’ huge fall in bean futures was mainly effected by the funds were profit taking. The trouble in the Middle East between the US and Iran does not appear it will resolve quickly. China gets a large amount of oil through the Straits which is has created serval difficulties and resulted on a delayed talks between the US and Iran. Traders are still optimistic about more beans being sold to China. Market continues to advance as energy markets show no sign of reversing their upward trajectory.Resistance runs from $4.69 to $4.76 and is being tested. December resistance from $4.90 up to $4.96. Support is at $4.49 ¼ in May and $4.76 in December.The Strait of Hormuz remains shut down with only a few ships passing through. That has the supply chain for not only oil but also fertilizers stopped from moving right before thenorthern hemisphere planting season. This week’s low in beans was at $11.45 ¼ is the best nearby support with resistance at $11.70 to $11.77.Headline news remains in control with several market issues keeping the soybeans in volatile conditions and well bid on breaks. The closure of the Strait of Hormuz has the energy markets moving higher which is keeping the beans well supported.Then there is the meeting between President Xi Jinping and President Trumpin five to six weeks which remains supportive. U.S. exporters sold only 11.0 million bushels of soybeans in the week ending March 12, below the low-end analyst estimate of 12.9 million and marking a five-week low. China was again the top destination for the week, but at less than 3 million bushels, sales remain 18.7% behind this time last year and the delay to the planned Trump/Xi meeting in Beijing makes USDA’s 1.575 billion bushel export target look more difficult to achieve, especially given hefty stocks in China and significantly cheaper Brazilian new crop supply. Weekly corn exports were within expectations. NOLA cif values are falling for corn as we move forward past May. This is not surprising as we are projected to have large ending stocks and new crop production to be high. There will be a lot of corn move down the river. Southern corn starts coming off in August and September as it moves northward.
The chart shows a downward trend since 200/2021. Corn is showing a strongest number we have seen since 2000/2021.
John R. Anderson Vice President of Grain Farmers Union Cooperative 563-380-2311
"I want to share something with you - the three sentences that will get you through life. Number one, 'Cover for me.' Number two, 'Oh, good idea, Boss!' Number three, 'It was like that when I got here.'"
