Corn Plantings Only 3% Completed
Good Morning! From Allendale, Inc. with the early morning commentary for April 17, 2018.

Grain markets are looking for a catalyst to push prices in either direction. One would think the cold and wet conditions will provide a story for the bulls, however, the forecast has the Midwest drier later this week into the following week. Look for more trading range action.

US winter wheat conditions improved by 1% to 31% good to excellent compared to 54% last year. The weekly conditions report showed HRW declining in condition while SRW and white wheat improving.

Spring wheat plantings went from 2% last week to 3% complete this week with a five-year average of 15%.

Corn planting increased by 1% to 3% complete versus 5% average for this time of year.

NOPA crush surpasses the trades bullish expectation with 171.858 million bushels. That was 12.3% over last year and a new record for any previous month.

On the sidelines of the Summit of the Americas in Lima, Peru, Mexican President Enrique Pena Nieto, U.S. Vice President Mike Pence and Canadian Prime Minister Justin Trudeau said they thought an agreement could be reached before Mexican elections on July 1, although they also said no deadlines had been set. (Reuters)

Funds turned sellers on Monday as it was estimated they were net-sellers of 7,000 contracts of corn, 7,500 soybeans, 3,000 soymeal, 4,000 soyoil and 9,000 contracts of wheat.

Late season winter storm that hit the northern cattle feeding areas and range country over the weekend has impacted cattle production. We will not know the actual death toll for a few days, however, the uncertainty is causing a rise in futures prices. Fed cattle prices this week could be higher as packers need market ready animals.

Fed cattle showlist increased again this week raising concerns about weakly slaughter keeping feedlots current. Beef product values could provide support as historically the late-April through May period is the peak demand time of the year.

Traders are wondering if the rally on Monday was an indication that managed money funds were returning to the increase their net long positions. Today will tell the story as Tuesdays are the day funds report net positions to the CFTC.

June futures has support at 101.20 and resistance at 106.00.

Cash hogs appear to have made a seasonal bottom and historically could work higher into the summer months. June futures are in a near-term uptrend with resistance at 78.00 and support at 74.90.

Dressed beef values were mixed with choice down .82 and select up .07. The CME Feeder Index is 137.59. Pork cutout value is up 1.82.

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