AG MARKET UPDATE: MARCH 8 – APRIL 8
Corn has traded in about a 20 cent range the last month spending much of its time in July corn between $4.40 and $4.60. The USDA acreage intention report gave the markets an initial bullish reaction but struggled to follow through past the report as prices have fallen back from the post report highs. Corn acreage for 2024 came in at 90.036 million acres (91.776 estimate) which was a surprise to the market. The trade appears to believe that the acreage number is likely higher as it has given some of the gains back quickly. While lower prices and high input costs are likely to affect farmer’s decisions, if the weather this April and May is friendly to planting it will be hard for farmers to leave acreage on the table. South America harvest in Brazil and Argentina is in line or slightly behind average.
Soybeans have fallen from their recent highs as the USDA Report did not provide the market with any actionable news. The USDA came in at 86.510 million acres (86.530 estimate), because the acres were so close to the estimate the report was not a big mover for the bean market. The market has slowly traded lower since the report as the next market mover will be the April USDA and April CONAB Reports this week. The more information we can get on South America’s harvest the clearer the picture will become as the discrepancies between the USDA and CONAB still have the markets confused.
Equity Markets
The equity markets have pulled back from recent highs with the pullback in some tech names but the market and economy are still strong as inflation remains sticky and the Fed trying to decide when, or if, to cut rates this year.
Other News
- US wheat acres will be lower than last year. Winter wheat plantings shrunk from the estimate in January, but spring wheat will be slightly higher than last year.
- The transmission of bird flu in cattle in several states this week drove cattle prices lower and is a development to keep an eye on.
Drought Monitor
Here is the current drought monitor as we head toward planting with subsoil moisture a focus.
Via Barchart.com
Contact an Ag Specialist Today
Whether you’re a producer, end-user, commercial operator, RCM AG Services helps protect revenues and control costs through its suite of hedging tools and network of buyers/sellers — Contact Ag Specialist Brady Lawrence today at 312-858-4049 or [email protected].