4/13/2021

Beans rebounded from yesterday's liquidation on the overnight trade and through the day session while corn was strongly higher after some mixed overnight trade.  After a large sell-off like yesterday's, you can expect to see markets bounce back higher the following day (Turnaround Tuesday!).  New crop corn established a new December 21 contract high of 505'6 shortly after the morning open and was able to hold most of its gains through the day.  Our second crop progress report for the season was released late yesterday afternoon with corn planting at 4% (6% trade estimate, 3% yearly average).  Spring wheat planting is seen ahead of average at 11 complete vs a 6% yearly average and is most likely due to dry conditions in large wheat seeding areas.  Winter wheat conditions are currently 53% good/excellent and 5% headed.  Planting soybeans ahead of corn has been a popular activity this year with farmers attempting to take advantage of the market inverse.  Basis has been strengthening daily for both corn and beans as end-users scramble to get coverage on an ever-shrinking supply.  Many are considering taking delivery on futures as a cheaper alternative to the cash market.