The Good: There was nothing good in the markets, but the weather forecast continue to be favourable for an early start to spring seeding. The long term average temperatures warm rapidly during April, which means that soil temperatures will increase quickly. The warm temperatures should result in significant plantings of frost tolerant crops by the end of the month. Of course, the downside has been the lack of moisture this spring. Rains are needed during April in order to get those early planted fields off to a good start.
The Bad: Happy April Fools day! It didn’t take too long for the markets to Take back at least a portion of yesterday’s gains. The market obviously doesn’t believe the USDA numbers and expects that corn and soybean acreage will end up closer to the trade expectations than the actual USDA survey. This reminds me of the traders that like to fight the Federal Reserve and usually end up losing their shirt. This is not to say that the market will not try to secure additional acreage in the coming weeks. Canola futures were caught up in the downdraft today with the July futures contract moving down C$16.10 per tonne to settle at C$701.60 per tonne.
The Ugly: Wheat markets were down through the day and moved even lower when corn futures began to falter in the middle of the trading session. Spring wheat was punished the most by the market as July futures were down 11. 5 cents per bushel to close the day at US$6.09 per bushel. Meanwhile, back in reality, the U.S. Drought Monitor pushed a good portion of western North Dakota into extreme drought. On would think that would be worth a little bit of a weather risk premium, Obviously, the market is more focussed on other things!