While investors still were digesting President Biden’s proposal for a $2 trillion infrastructure plan and markets saw the Dow to loss 88 points to close 32,981, the energy futures that tilted lower, with crude oil dropping more than 2%, gasoline that saw similar losses, and diesel down around 1%, on grains prices, fireworks were ignited by the USDA Prospective Plantings and Stocks reports.
Indeed, it was a great day for grains prices yesterday.
Those reports, helded some bullish surprises that boosted corn and soybeans enough to close the session limit up.
Corn area was pitched at 91.1 million acres, beans at 87.6 million acres, for a “total pie” of 178.7 million acres versus trade talk of up to 184 million.
Wheat, at 46.4 million acres.
Milo/sorghum, at 6.9 million acres was slightly above estimates.
Stocks figures were also slightly bullish for corn, 7.7 billion bushels (bbu) and soybeans, 1.56 bbu.
Wheat stocks,1.3 bbu, were above expectations.
Consequently, corn jumped more than 4.5% higher.
Soybean carved out gains of more than 5%.
Also wheat went a long for the ride, with most contracts finding double-digit gains.
CBOT will trade now with expanded daily limits on row crops enabled by the limit-up moves for corn, beans.
The new limits on outrights are beans 105¢/bu and corn 40¢/bu.
Where do we go now?
Can the rally buy back-in more row crop acres with planting already kicking off down in the southern parts of the US?
Or do the row crop markets need to work to ration demand lower to balance out the lower acres?
In this context, now traders are rapidly readjusting and repositioning to reflect their own views into the planting window.
This weekend will be marked by the close of markets tomorrow Good Friday, both in the USA and in Europe.
Note that on Monday the European markets will be closed and the American markets open.
EIA weekly ethanol production was up to 965,000 bpd even as stocks dropped another 695,000 bpd.
However, ethanol futures followed other energy prices lower, however, with May futures down nearly 1.4% to $1.825.
On European market, even if to a lesser extent, Euronext quotations took the opportunity to reap significant gains at the end of the session with rapeseed that posted impressive price increases yesterday.
On the side of its own fundamentals, the current and future European rapeseed balance sheet remains very tight, and the state of crops in France raises many concerns with areas that some analist posts much lower than those of other analysts.
From a climatic point of view, large differences are expected, with exceptionally high temperatures over Europe in recent days, followed next week by the return of some morning frosts.
From Black Sea basin, spring planting has started in Ukraine with more than 100,000 ha planted as of March 25, according to data from the country’s Ministry of Economy.
The total area for the 2021/22 season should reach 28.1 Mha, or 378,000 ha more than last year.
Aussie local markets are looking for support in early discussion today after the global moves in commodities and currency.
The Malaysian palm has for its part given an additional boost to the oil market by offering a rebound on the Kuala Lumpur Stock Exchange.
The resumption of national exports in the last week of March reassured operators in particular.
On the international trade scenario, the Algerian tender in soft wheat closed yesterday, with, as usual, optional origins which could, in view of the price levels applied and the specificities required, be distributed between Germany, Poland and perhaps France.
The volume should be around 500,000 t.
A South Korean animal feed maker purchased 60,000 metric tons of soymeal, likely sourced from South America, in an international tender that closed earlier today.
The grain is for arrival in late September.
South Korean mills purchased 2.9 million bushels of milling wheat from the United States and Canada in a tender that closed earlier today.
Of the total, 62.5% was sourced from the U.S.
The grain is for shipment in July.
