4/21/2021

Another big day on the board with numerous new contract highs.  Overnight was slightly lower but futures rallied quickly after the day session opened, with nearby corn adding 19 cents to close at 625'4.  This brings our 3-day total from trade this week to 36 higher on the May corn contract.  Soybeans closed higher for the seventh consecutive day, tacking on $1.13/bu to the May contract over that same period.  We also had our first test of the 1500 mark on the May soybean futures, trading within 1/4 of cent, at 1499'6.  Chinese officials have made it a point to announce that they will be shifting to feed rations that require less corn but this will increase demand for alternative feed grains and vegetable oils to balance those rations.  China also has a growing ethanol sector that will need corn.  Weather remains a big factor in US corn and soybean prices for both old and new crop.  Brazil's soybean harvest is coming to an end and we are still unsure the actual size of the crop, with estimates still coming in a large 180 mln bu range.  Weekly ethanol numbers showed steady production compared to the week prior, with 6.59 mln barrels produced.  Ethanol stocks were cut 71,000 barrels, creating the 9th consecutive week that inventories were reduced.