Market Update March 2016

The  all-important USDA prospective planting and stocks on hand reports came  out today and there were several surprises to report.   Most  importantly, Corn planting projections came in at 93.6 million acres,  well above pre-report estimates, and prices are expected to remain weak  for the near future.  Milo stocks on hand are substantially higher than  pre-report expectations as well, and prices should continue to soften in  the coming months.  Soybean stocks on hand are 15% higher than last  year, so more bearish news on that front.   Couple all that with a  strong dollar, and the commodities outlook for the major grains should  be continued bearish.  Here are some updates on the specialty crops  pertinent to our industry:

Sunflower – planting intentions down  9% from 2015, 4th lowest acreage since 1977, stocks on hand are 52%  higher than 2015.   Weak demand has produced a glut in supply and FOB  prices have been steady in the $18-$23 range depending on spec.

Peanuts  - planting intentions down 9% from 2015, stocks on hand not reported.   Afla spec for bird food continues to cause issue on current contracts.  Most trades have been in the $25-$26 range for wildlife pickouts FOB  Origin. Fancy Inshells are all but sold out for 2015 crop year

Millet  -  nothing reported.  It’s a battle with farmers at this point to get  the lowest prices, values hovering in the $7-$8 range for bulk recleaned  white proso for domestic shipments

Safflower – not reported  yet.  Relatively high prices are sure to attract more growers, I expect  acreage to rise in 2016. Values in the $25 - $28 range depending on spec  FOB origins

All of this info is just a starting point for the new crop, feel free to call for specifics.