4/21/2023

Corn and soybeans completed a reversal lower on the week to abruptly end a four-week rally which saw corn pick up around 50 cents and soybeans near $1.20 at the top of the move.  Given the losses on the board since Wednesday, the charts have become violently oversold very quickly and we should see some recovery next week.  On the fundamental side, we have a good idea of the values that are attractive to U.S. export customers.  We had some consistent sale announcements from the USDA but those suddenly went silent and yesterday's weekly net export sales report was disappointing.  Corn and soybeans both missed low with 312k tonnes of corn and only 100k tonnes of soybeans sold last week.  To put this into simple terms, unless a crop or supply problem develops in Brazil or the United States, it feels like trade is defining the top end of our price ranges for old crop corn and beans.  Basis will do the work pulling the crop where it needs to be.  The market moves fast.  If you did not price any cash grain in the area of $6.50 corn or $14.60 soybeans, get orders working!  The market is expecting a large bump in planting progress on Monday's report.