3/17/2021

May corn traded firmly 1-2 higher overnight and through the day session.  This morning, the USDA announced another sale to China of 1.224 mln tonnes of corn, or 48.2 million bushels, for the 2020/2021 marketing year.  The inverse in the May and July corn futures has increased by roughly 5 cents this week, to 15, after two large corn sale announcements on consecutive days that total 93.7 million bushels.  Some analysts think these sales may be more of a goodwill gesture and cash hedge leading up to China's first face-to-face meeting with President Biden tomorrow.  Feels like we may have enough fresh bullish news to keep us in the top end of rangebound.  Soybeans continue to be pressured on some ASF concerns in China.  The large daily trading ranges in soybeans have narrowed this week from about 25 cents down to 13.  There hasn't been much to move the needle in terms of the soybean market recently but it seems as though conditions in South America have improved somewhat.  As a whole, Brazil is approximately 50% harvested and continues to increase their pace of harvest.  Argentina has received some rain but may not be enough to benefit the crop.