Grain > Commentary > 5-5-2023

5/5/2023

May 05, 2023

Gains across most markets today with corn and soybeans trading higher in solid fashion to end the week.  Corn was consistent in setting intraday highs throughout the session while soybeans traded steady in the range of 6-18 cents higher, closing just a penny or two under today's highs.  Once again, wheat lead the charge, finishing the day with double digit gains of 15-34 cents.  The funds and managed money had positioned themselves net short and it appears they maybe got squeezed out of their own position.  None the less, it’s nice to see some positive trade.  Seasonally, we should see the Dec corn contract rally going into June and Nov soybeans rally going into July.  There are already some serious drought and soil moisture concerns in Eastern Nebraska.  If we are able to turn this into a weather market (again), we could be seeing the beginning of a sustained rally.  Forecasts continue to show a mostly wide-open window for planting and I expect Monday's progress report will likely see our largest percentage increase in planting completion so far for the year.

Looks like we are set up nicely for a correction that will fall in line with the seasonal trends.
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