3/30/2021

The combination of quarter-ending, month-ending, and being a day prior to the planting intentions and grain stocks reports, the funds took the opportunity to take risk off of the table going into Wednesday.  We did have small flash sale of 100,800 tonnes of corn to unknown for the 2020/21 marketing year (4 mln bushels).  On the technical side, old and new crop corn and beans all closed below their 50-day moving averages but May corn continues to trade in the 530-559 range it established in early February.  These sharp, downward corrections we experienced today have become a bit of a pattern this year around report days.  There's still a bullish sentiment to the old crop grains, even wheat, going into the quarterly stocks report tomorrow and, by market close tomorrow, we are sure to have as many new questions asked as old ones answered.  We don't hear much of news out of South America lately in terms of crop quality or yields, so the safe thing to assume is that there is not much of an issue down there.  Given that trade is quiet overnight, tomorrow morning will still offer opportunity for the farmer to take some risk off the table and lock in some new crop cash sales at levels that we do not often see.