4/19/2021

Markets surge higher, with new crop corn and beans both setting new contract highs.  The old crop months now look to be prepped to take another run at their current highs.  We're still in a bull market and the mix of colder than normal temperatures in the US keeping corn planting at a minimum and dry weather in Brazil, where an estimated 40-45% of the Safrinha corn crop is at risk from abnormally dry conditions, provides some firm underlying support.  That same percentage of Safrinha corn is seen as receiving less than 25% of normal rainfall.  The dollar index was also down around 500 ticks today.  Export inspections for the week were within estimates but on the low-end with 1.525 mln tonnes of corn inspected (1.4-2.1 mln estimated) and 184k tonnes of beans inspected (100-400k estimated.  Wheat out performed expectations, with 614k tonnes inspected versus the 250-550k estimated.  Covid restrictions continue to be eased and travel has been increasing, lifting energy demand.  The market outlook for late spring/early summer is extremely good right now.  A rising tide lifts all ships but if you have not put together a strategy to take advantage of the market inverse, do so while it is still there.