4/22/2024

Some really nice follow-through after Friday's recovery resulted in some key technical signals for trade. Each pullback throughout the day was met with some fast buying. Corn and soybeans followed wheat's lead. Wheat trade has been strongly higher the past two sessions after it was reported India's wheat stocks are at a 16-year low. The weekly export inspections report provided an extra lift to the market around mid-day with corn shipments reported at a marketing year high of 64 million bushels, or 1.62 mln tonnes. This was well above all the trade estimates and also nearly a 2-year high. Corn shipment pace is now 67 million bushels above the USDA export target, improving from 53 million bushels last week. Soybean export inspections were steady with the previous week at 16 million bushels and improved their seasonal pace from 32 million to 35 million bushels above the USDA target. It would be fantastic if we can materialize and sustain a rally through planting season but the old saying is "the bull needs to be fed every day." Cash corn sales at $4.20 or better and new crop corn sales at $4.25 or better need to be seriously considered. Or, December HTA's at 4.77 or better.

A very attractive technical set up on the corn charts for a sustainable rally. Corn easily pushed through the 20- and 50-day moving averages and the October down-trend line today. We now have some “air” above us for a continued move higher and those moving averages will hopefully now become support areas. First objective(s) would be the 100-day moving average at 453 and the 38% retracement at 454. This is a futures area to use as a target for cash sales.