Early Market Talk May 20, 2021


Overnight trade continues to recover after last weeks washout and yesterday’s late corn rally into the close. No compelling story leaves market vulnerable to further weakness however as we move forward on the calendar.

Trade volume yesterday again on the lite side for corn and soybeans. Corn open interest up for the first time in six sessions. 

At 0600 CN21 trading 5¢ higher at $6.63 1⁄4 and has seen a 9 1⁄4¢ high to low range. SN21 6 1⁄4¢ higher at $15.44 1⁄2 in a 17 3⁄4¢ range. MN wheat a couple cents higher this morning with KC giving up some ground. SBO trading lower. 

Dow futures off 146 points this morning working after three straight lower closes. Moving in on the May 13th low. 

Funds were sellers of an estimated 5K corn and 15K soybeans yesterday. Estimated net long 226K corn and 131K soybeans with updated CFTC data tomorrow afternoon. 

7-period RSI on corn this morning at 44. Hit a low of 33 last Friday. Soybean RSI on the spot contract a scratch under 40. 

Weekly corn grind for ethanol totaled 104.4 mln bu, exceeding the pace required to meet USDA’s forecast by 6.67 mln bu. 

New crop soybeans still trading higher than any price on a SX contract the previous 7 years. 

Carl Zulauf of Ohio State University says farmers overseas have expanded harvested area of grains and oilseeds by an average 17.8 million acres annually since 2003. Any bets they beat the average this next year? 

Export sales report later this morning and expecting some big new crop corn numbers. Will not show announced Chinese corn purchases this week. 

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