Corn Prices Surge as U.S. Farmers Sell Stored Grain for Spring Planting
U.S. corn prices skyrocketed as farmers sell stored grain to raise cash for spring planting, with anecdotal evidence suggesting a 21% rise in daily cash corn receipts at Midwestern grain terminals. In contrast, soybean sales slowed down, with a marginal 2% rise in deliveries. The surge in corn sales was inevitable, given the 50-cent rally in prices and the approach of spring. However, the sudden increase in corn movement poses a challenge for grain handlers and terminals.
Key Takeaways:
- U.S. farmers are selling stored corn to raise cash for spring planting, leading to a 21% rise in daily cash corn receipts at Midwestern grain terminals.
- Corn prices surged with cash-contracts dropping 1 cent, while soybean prices rose 2 cents.
- The schism in price-trends for corn and soybeans can be attributed to a thin U.S. cash soybean pipeline, slight pickup in U.S./South America farm soy sales, and rumors of 2-3 U.S. bean cargoes selling to China.
- U.S. corn planting is ahead of schedule in the Deep South, where last week's rains will help spur prompt germination.
- Wheat futures continued to rally, closing 6-8 cents higher, due to favorable weather forecasts and concerns over wheat production in the southern Plains.
- A late-winter heat wave has swept the Great Plains, with daily high temperatures expected to reach or exceed 80 degrees Fahrenheit from Kansas to Texas.
Statistics:
- 21% rise in daily cash corn receipts at Midwestern grain terminals (Source: CBOT)
- 50-cent rally in corn prices (Source: CME Group)
- 2% rise in deliveries of soybeans at Midwestern grain terminals (Source: CBOT)
- 6-8 cent rise in wheat futures (Source: CME Group)
- 80 degrees Fahrenheit, the expected high temperature in the Great Plains (Source: USDA)
- 2-3 U.S. bean cargoes rumored to be selling to China (Source: MF Global)
Sources:
- Dow Jones Commodities News via Comtex
- CME Group
- CBOT
- MF Global
- USDA
- Dow Jones Newswires