The FSA at 5 AM released the preventative plant acres adjustment. The USDA uses this data to project s/d figures. They were increased for both corn and beans. This is a non-event and won’t be completely hashed out until Oct. 11th USDA crop report.
Looking at the chart above, its a range trade, with 60 cent swings. $3,000.00 a contract if you have the futures on. After a 50 cent break I can’t get to excited about a 15 cent rally. The acres for beans went to 1.687 vs 1.619 last month. Planted and failed acres were 74.605 vs. August’s 72.061
The delta had good yields, but we are waiting on harvest in the north. That will tell the tale. For now we are waiting for the next USDA. I would continue to try to sell the upper range level in the beans and buy on dips down to the 1330-1345 area. With beans as volatile as they are, keep your stops tight.
I’m looking at this Trend line in cZ. Although the trend is lower, I could envision a rally up to the 4.88 level. October options expire Friday. The largest open interest is at 4.70. Currently we are at 4.66. The FSA data for corn was also supportive this AM. After 3 lower sessions a bounce back is to be expected. FSA acres went to 3.573 million acres, up from 3.411 million acres in August. Planted and failed grew to 91.428 million vs. 88.771 million last month. Corn continues to follow the beans. The rest of the week’s trade most likely will be sideways chop. We really need to wait until the October 11th USDA to get another good punch.
CER