5/3/2023

Some incredible reversals today took corn and soybeans to some strong finishes. The price leader by far was wheat, with gains of 30-45 cents after early morning reports of a "Ukrainian drone strike" on the Kremlin. Strangely enough, security camera video footage was conveniently available almost immediately, you be the judge. Regardless of opinion on that, that market used this as a catalyst to guide grains higher. Energies and proteins spent another day in the gutter. Crude oil was down over $3/barrel most of the day, breeching the $70 level. Stocks bounced slightly and indices hovered around unchanged after the Fed announced a 25-bps rate hike, less than the expected 50-bps increase. The weekly ethanol report showed a rise in production of 9,000 barrels/day to 976,000 bpd. Stocks dropped 900,000 barrels from last week to 23.4 million barrels.

A really nice technical day for corn and soybean bulls including this Bullish Key Reversal in December corn. After printing its lowest mark in 16 months, December 23 corn rallied out of no-man’s land to close above yesterday’s high.