3/23/2021

Another day lacking any real fresh trading news.  Trade continues to stay range bound with any move inside of the established ranges dictated by the fund and speculator money deciding to either buy or sell.  Crude oil began rallying the day after Election Day (go figure) but has recently been in a sharp decline after setting contract highs 2 weeks ago.  Despite a 15% fall-off in futures, the increase in crude oil prices has helped improve ethanol margins.  Basis for both corn and soybeans has strengthened during the month of March with end-users bidding to lock in coverage through the spring planting season where farmer selling and hauling is seasonally idle.  We have seen good precipitation recently in Argentina, easing some of the concerns of crop failure.  In the US, drought stressed areas have been the beneficiaries of ample rain and snowfall over the past couple weeks to give this year's crop a nice start at planting.  We are still in a bull market but the number of items on the menu to feed the bull are shrinking.  The USDA's planting intentions report, set to be released on the 31st, will provide a fresh set of real fundamentals to give our market a direction and provide the best chance to break higher.