The weather is generally favorable for planting corn in the Midwest, and we continue to have generally favorable weather for crop development in the Southwest for wheat. We still have prices for wheat in the U.S. that seem to be higher than wheat from some competing sellers in the world market. I would advise producers to be ready to take advantage of opportunities on rallies to these price objectives irrespective of what might be done with the product in terms of placing it in the loan program or taking LDP payments. There still needs to be some protection against substantial downside moves in this market. Corn producers, where corn and soybeans are competing for Midwestern acreage, should stand back from this market and not do additional forward pricing until we see rallies.
Wheat looks as bearish as does corn on the charts.
Obviously, this market has been calling for price protection for some time to come. This crop is not made yet. I would suspect that we will, at a minimum, get some corrective bounce off these respective lows.