Early Market Talk February 22, 2021

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Solid overnight volume on lead two corn contracts of a combined 54K. Soybean volume on lead two months a combined 38K. Corn clawing back some of Friday’s sharp losses with lingering South American weather and production questions. Acreage mix for the upcoming 21/22 US crop cycle also getting some.

At 0600 CH21 up 4 ½¢ at $5.46 ¼ with SH21 a scratch higher at $13.77 ½. Chi and KC wheat 3 and 5¢ higher.

Dow futures off 175 points this morning with some concerns on rising bond yields. S&P 500 ended lower last week after three straight weekly gains. Crude up 63¢ at $59.87. US $ Index lower this morning. Stronger against the Brzl Real.

Sharp break in corn price Friday was with open interest jumping over 14K contracts.

Ag Outlook Conf last week showed combined acreage for corn and soybeans at a record 182 million acres. Compares to the previous record in 2017 of 180.3 million.

Strong prices and normal weather conditions have the three crops (including all wheat) total acreage projected to reach 227 million acres and the most since 2016 at 227.6.

Funds sold an estimated 25K corn Friday. Updated with CFTC data we now have them net long 317K contracts. That would be about 3K contracts above the previous week. Soybean net long estimated at 139K as of Friday.

Weekly export inspections at 10:00 this morning. Trade will focus on pace and what is needed the balance of the year to get to USDA numbers on both corn and soybeans.

A couple weather headlines this morning - Heaviest rainfall to continue across northern areas in Brazil. Dryness to increase in Argentina over the next 10 days. Warmer weather for the central and eastern U.S. next 15 days

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