3/3/2022

Fundamentals remain mostly unchanged but dynamic money flow and volatility continue to maintain their strangleholds on the market.  Spec dollars continue to push the May/July 2022 corn spread even wider, trading out to a 52'4 cent inverse at one point today.  A quick glance around the region shows almost every cash corn bid has moved to the July futures practically overnight.  Last year's inverted corn market helped write a playbook to navigate this year's strange market.  Corn and soybeans traded strong for almost the entirety of the day session, May corn was locked limit several times throughout the day, but it appeared money was heading for the door when the clock struck 1:00 pm.  This was one of the uglier closes we have seen in quite some time.  Corn and soybeans both wiped out about 20 cents of gains in the final 15 minutes to finish mixed on the day.  We had 2 sale announcements at 8 a.m. that included 132,000 tonnes of soybeans to China split evenly between the 2021/22 and 2022/23 marketing years and 337,000 tonnes of corn to unknown for the 2021/22 marketing year.  This corn sale is likely the export business that we were enlightened on earlier this week.  Weekly export sales for old crop were weak for corn (485k tonnes) and within range for soybeans (857k tonnes).  New crop sales for corn were ok with 223k tonnes sold and new crop soybean sales outperformed expectations with 1.386 million tonnes sold. 

Major position dump in the final 20 minutes today. That’s a 20 cent range in corn within 5 minutes.