Friday, January 18, 2019
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Corn to Soybeans Slip as Weather Outlook Favors Planting

Corn and soybean futures fell as warmer temperatures and limited showers forecast for the U.S. Midwest this week are expected to allow farmers to partly catch up planting delays.

Most of the Midwest will be warm and dry through Thursday, while eastern parts won't see showers until at least Friday, Commodity Weather Group wrote in an outlook today. Weather is favorable for planting, though thunderstorms are expected in the five-day period, DTN wrote in a report.

"With reasonable weather as expected, the differences between what has been planted thus far this year and the five-year average will narrow appreciably in the course of the next week or two," economist Dennis Gartman wrote in a newsletter.

Corn for July delivery fell 0.8 percent to $5.04 a bushel on the Chicago Board of Trade by 7:13 a.m. local time and soybeans for delivery the same month declined 1 percent to $14.4875 a bushel. Corn futures trading volumes were 45 percent lower than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.

U.S. corn was 29 percent planted as of May 4, up from 11 percent a year earlier and compared with a five-year average of 42 percent, the U.S. Department of Agriculture reported yesterday. Soybeans were 5 percent planted, compared with a five-year average of 11 percent.

"Tractors and planters are moving across the fields and some major progress should be seen this week," Paul Georgy, the president of Allendale Inc., said in a market comment.

Farmers in the U.S. may seed a record 80.5 million acres of soybeans in 2014 as returns relative to corn are the highest in more than five years, analysts at Morgan Stanley wrote in a report dated yesterday.

Warmer weather will allow "for material planting progress of the corn, soybean and cotton crops," Gartman said. "American farmers will be in their fields planting aggressively over the course of the next two and three weeks."
Wheat Falls

Wheat for July fell 0.5 percent to $7.2575 a bushel, after reaching $7.405 yesterday, the highest for a most-active contract since March 28, 2013, as violence spread in Ukraine. November delivery milling wheat traded on Euronext in Paris fell 0.7 percent to 207 euros ($289) a metric ton.

Government forces yesterday had four deaths in fighting that may have killed about 30 rebels, Ukraine's acting Interior Minister Arsen Avakov said on his Facebook account. Russia is the fifth-biggest wheat exporter, followed by Ukraine, USDA data show. About 38 percent of the U.S. winter wheat crop was in poor or very poor condition as of May 4 from 34 percent a week earlier, the USDA said yesterday.

To contact the reporter on this story: Rudy Ruitenberg in Paris at This email address is being protected from spambots. You need JavaScript enabled to view it.

To contact the editors responsible for this story: Claudia Carpenter at This email address is being protected from spambots. You need JavaScript enabled to view it. Sharon Lindores, John Deane


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Contributing Editors

  • adrian muller has conducted seminars for the chicago board of trade, including a key series in 1999 which cautioned about a top in the equity markets (see his article “top experts and statistics on the dow”). adrian muller has appeared on cable tv financial programs with analysis on the futures markets and equity market directional forecasts. he has been quoted in barron's, the wall street journal, and futures magazine.

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