We started off the week with NY Fed Treasury Purchases 4.5 to 7 yrs. at 8:30 A.M., Consumer Inflation Expectations at 9:00 A.M., 3-Month & 6-Month Bill Auction at 9:30 A.M., Export Inspections at 10:00 A.M. and 3-Year Note Auction at 11:00 A.M.Were coming in lower this morning with corn and soybean meal leading the retreat. Soybean oil has the strength as fats & oils are in high demand. Kuala Lumpur palm oil market is peaking to new levels fueled by tight supply and optimism of demand. We opened the week higher as the global markets digested and reacted to the USDA March Crop Report, but profit taking, and lack of export demand allowed prices to back off. A much more important USDA/NASS report will be released in 15 trading days, the March Stocks and Seeding Intentions March 28th, ahead of the 3-day Easter Holiday Weekend.
The South American weather models remain remarkably consistent which raises confidence in forecast. Below normal rains falls across Northern & Central Brazil while soaking rain of 3-6.00” douses NE Argentina into March 21st . This same weather pattern and precipitation outlay is maintained into the 11-15 day period are lower confidence as they were not pulled forward in the forecast over the weekend. A sizable decline in soil moisture is forecast for the northern 2/3’s of Brazil which elevates the importance of late March and April rain for the winter corn crop. Brazilian high temps will reach the 90’s on most days with highs reaching the mid to upper 90’s midweek. The Argentine forecast is nonthreatening except for the soaking rain for Corrientes and Entre Rios where flooding is due to daily heavy rains. No Argentine extreme heat is in the forecast.More By This Author:Unemployment & WASDE – Roll The Dice. The Corn & Ethanol Report
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