CBOT weekly outlook: Market stuck in range until acreage report

MarketsFarm — Until the U.S. Department of Agriculture issues its next acreage report, expect the Chicago Board of Trade to remain stuck within a range, a trader said.

“Until the August report and the USDA verifies the plenty of preventative planting acres, and if August happens to be hot and dry side, I can expect corn to go through $5 (per bushel) with no problem,” said Scott Capinegro, president of Barrington Commodities at Barrington, Ill.

In USDA’s most recent acreage report, it was widely believed the switch from corn to planting soybeans was largely missed, as were acres that didn’t get planted this year due to the timing of the surveys.

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The eastern Corn Belt has been a particular problem, with little rain that’s left corn about three to four weeks behind in its growth, he said.

“It’s maybe knee-high and looks like a pineapple field,” he said.

In Illinois, the northern part of the state missed recent rains while the southern portion received one to two inches, with reports of up to three inches in a few areas, Capinegro added.

A storm system over western Iowa was moving toward Illinois and could provide some much-needed precipitation, he said.

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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