Morning Comments March 30, 2021

Soybeans2

The markets are acting tired ahead of the stocks/acreage report tomorrow, with closes in the red yesterday and lower prices again in the overnight session. Managed Money has been gradually reducing their commodity long positions and are estimated to hold current long positions of 364,000 corn contracts and 131,000 bean contracts. Many markets are waffling between trading a return to pre-COVID economic activity, versus an increase in European lockdown restrictions due to strain variance and slow vaccine rollouts. OPEC meets again late this week to discuss oil output. 

Weekly export inspections yesterday were good, not great. Corn reported at 66.7 million and beans at 15.6 million. Japan, China, and Mexico were the lead destinations for both. The Suez Canal reopened for vessel transit yesterday. 

Cash DDG and soymeal markets have been soft the last couple of weeks, as strong soy oil values have translated into oil carrying a larger percentage of the crush margin. Cash corn and bean basis levels have a firm tone on very light farmer selling. 

Opening Calls:

Corn: down 1-2c

Beans: down 5-7c