Chicago Board of Trade Market News
Outlook: USDA published the planting pace for U.S. corn on Monday and data showed that 2 percent was planted as of April 12. That is behind the average rate of 5 percent, but being behind or ahead of the average is not extremely important this early in the season. Corn planting was 3 percent accomplished for the same week last year and progressed to surpass the average before the planting period was complete. However, the progression of planting within the primary states does need to be monitored. For example, the five-year average rate of corn planting in Illinois is 9 percent complete by April 12, while this season it is nothing.
The planting pace for U.S. sorghum was 16 percent complete as of April 12. Last year it was 19 percent complete and the five-year average is 20 percent complete. Oklahoma is the only state where sorghum planting is running ahead of the five-year average. In contrast, the planting place of U.S. barley at 27 percent complete is ahead of the average and last season’s rate, both of which are 15 percent. The majority of U.S. barley is produced in the northwest portion of the United States and not in the Corn Belt.
The short term outlook is that price action for feed grains will become increasingly volatile and choppy as updated global weather forecasts and additional demand news supersedes the importance of technical chart patterns for a time.