Grain > Commentary > 4-22-2021

4/22/2021

Apr 22, 2021

4/22/2021
The bulls flexed their muscles in a big way today with the May and July corn contracts finishing the day limit higher and cash beans 34 higher.  We commented earlier this spring that the combination of the tight balance sheets in corn and beans and weather could make for some huge market moves in either direction. The lingering cold looks to be on its way out of the US growing regions, which will see US corn planting pace increase accordingly, but with Brazil forecasted to be dry for the next 10 days and signs of drought stress already visible, grains had the only reason they needed to make a huge move higher.  How high do we go?  May beans traded 1543'0 today but failed to close above the major resistance level of 1536'6, back on 5/22/14.  A close above this number would have us set our sights on filling a gap to 1580'0 that is still on the chart from July, 2013.  Funds have added to their net longs in a huge way, taking advantage of the revised spec position limits that were set in place beginning of March.  This may create some interesting volatility on the way back down when our supply issues are resolved. The front month for Spring Wheat traded above the 700 level today for the first time since August of 2017.
 

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