Corn is up 4 and soybeans are up 2 this morning.
Yesterday old corn saw some strength on reports of harvest delays in South America a stronger wheat market and algorithmic trading that sent May and July corn 18-20 higher at some points.
Yesterday saw the funds as buyers of 10,000 contracts of Wheat, 35,000 contracts of Corn and 4,000 Soybeans. They are estimated to be long 7,000 contracts of Wheat; net long 466,000 Corn; net long 175,000 Soybeans.
The USDA will release the World Agricultural Supply and Demand Estimates report today at 11:00 central. (estimates below) New crop supply and demand estimates will be released in the May report.
USDA 2020/21 Ending Stocks (million bu)
|USDA||Ave. Est.||Last Year|
While things look very bullish in the corn market right now, there are some reasons for anyone long corn to be cautious. Reports from ADM that China will not be taking all the corn that they currently have purchased and will be cancelling or rolling those purchases out to next year. There are also reports from ethanol plants across the Midwest that are looking to shutdown this summer due to corn shortages in their area and extremely high basis levels. One or both of these scenarios playing out would dramatically change the carryout numbers and send the markets in a freefall.
Have a Safe Day!