Morning Comments May 7, 2021

Agronomy Sprayer

As we look to end another great week for the bulls (July corn, December corn and November beans all moved into new highs this week!) there’s really not a lot of new news to talk about.

The headlines should be very familiar to you by now: **Brazil’s crop is drying/dying out waiting for a rain that won’t come. **China’s demand looks/feels/smells real and doesn’t appear to be going anywhere. **Demand for corn used in ethanol has snapped back post-COVID. **There’s an underlying story of dry weather in the U.S. corn belt which will get put onto the front burner as our growing season rolls forward. Of course, the thing about weather here is, it tends to change – the question this year for us (and the market) of course is whether it worsens, or it improves.

Looking ahead to next week, we have the USDA’s Monthly S&D Report that will be out at 11am on Wednesday. With that looming, the trade Monday/Tuesday will likely start to thin out as we get closer to report day. We will see estimates from the USDA not only for this year’s corn/soybean ending stocks, but we will also get our first look at next year’s S&D (and will see fresh estimates on Brazil’s drought-stricken corn crop). Lots of good stuff, will have more on that for you next week!

Currently:

Corn is 4 to 6 cents higher

Soybeans are 11 to 17 cents higher

May 7 Map 1