The USDA released their weekly Crop Progress report Monday afternoon. The figures as of May 4th, show 27 percent of the corn crop has been planted. This compares to the five-year average of 59 percent for this time of year and 45 percent in 2007. Traders were expecting the numbers to come in between 25 and 30 percent, so there wasn’t a big surprise here. However, the corn crops are well behind schedule and may be subject to lower yields this season – something this market can’t afford.

The soybean crops are 5 percent planted, compared to the five-year average of 14 percent. This is not a big concern yet for soybeans. The bigger concern deals with some farmers deciding to plant soybeans instead of corn if they can’t get the corn in the ground on time.

Crude oil continued to snap back sharply again today after the quick correction last week. June crude oil futures hit new highs above $120, but settled just below that level. It is amazing how quick the corrections have been in oil, which is a sign of a very strong market. There should be stiff resistance at $123 to $125.