4/1/2021
Apr 01, 2021
After closing limit higher yesterday, it was hard to imagine we would finish the week with a red leg on the chart for the old crop months. Last night, May corn gapped higher on the open by 11 cents and May beans put up an 8-cent gap with both wasting little time trading to 20 higher. It was a downhill slide after that with managed money and algorithm trading constantly repositioning. Best not to put too much weight into today's trade action as we need the 3-day Easter break from trade to really understand what price levels we should be trading. We get another big report next Friday, April 9, in the WASDE report. If the USDA decides to keep carry-outs at the same numbers 3 months in a row, it will be tough to maintain our renewed bullish momentum. Overshadowed today were the weekly export sales. Corn, soybeans, and wheat were all within their expected ranges but mostly on the low end. The biggest highlight was China purchasing one cargo of US soybeans plus one cargo switched from unknown to China. Reminder, GPC will be closed tomorrow (4/2/21) for Good Friday. The markets will also be closed but trade will resume Sunday evening at 7 p.m. and we can work a sell-order if you like. Happy Easter.