Grain Tidbits - April 13, 2018

Another week goes by with the upper Midwest weather still looking at below normal temps.
USDA came out with their report on Tuesday the 10th, with no big surprises on corn.  Corn exports were left unchanged.  Global supplies of corn are lower, and likely will move lower. Brazil's safrinha (second-crop) corn crop is doing well in the northern third of the belt but are experiencing moisture stress in the central third of the belt, and moving toward stress in the southern belt.  USDA also lowered Argentine soybean production down, which supported the market.  The reduction in Argentina was partially offset by an increase for Brazilian production.
Soybean demand has been good due to the world needing beans and meal.  The US has the competitive edge on soybean prices, and what appears to be better demand from anyone, except China, the trade tariff mess has helped business come to the US from other sources. Marketing year bean export sales to date exceed the pace needed to reach USDA's target by 42 million bushels.
Basis levels continue firm for corn.  The Pacific Northwest export market firmed up, due to the increase in export demand.  We are currently 5% ahead of the typical pace for corn sales.  Hopefully this trend will continue.  One thing to keep in mind and watch for, are reports that bean acres in the Dakotas will be increasing due to the slow planting start.
Thank you for your continued business, and we continue to look forward to better weather!