Market Comments
By Jim Stephens,
President of Farmers National Commodities, Inc.
Market Update for May
13, 2008
Soybean markets have shown recovery following the report last
Friday while wheat and corn have slipped lower after a brief move higher
Friday morning. Soybeans are getting support from a drier forecast that will
help get corn acres planted and possibly reduce the amount of acres in
soybeans this summer. Soybeans are also getting support from the Argentine
farmer strike that resumed again this week. This will shift some export
markets back to the US this week. Soybeans also saw support mid day from
stronger crude oil markets.
Corn is under pressure from increased
planting paces with forecasts calling for less rain this week. A lot of corn
is going in under less-than-ideal conditions, which could create problems
later on. The ground has been too wet when some corn was planted with side
wall compaction a concern. The cool soils have kept germination and emergence
at a slow pace. Typically when we have rain delays in May, we have warmer
soils with adequate moisture when the crop is finally planted for rapid
emergence.
Wheat has been under pressure from the
report last Friday that increased world and US ending stocks levels for
2008/2009. We expect to see only brief rallies in the wheat market into harvest
with a downward bias on long-term prices.
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