Market Commentary March 8, 2021

Corn Emergence 2

The markets surged higher overnight to start the week due primarily to continued adverse weather in South America. Argentina is currently hot & dry, and parts of Brazil are too wet. The same weather patterns they have been struggling with for several weeks are now getting worse with harvest delays in Brazil and yield losses likely in both countries. 

New contract highs were set overnight for palm oil and soybean oil. New crop corn and beans also set new highs last night. We have seen moderate new crop farmer selling the last few trade sessions. 

The WASDE monthly supply/demand report is tomorrow with minor adjustments expected. Exports are likely to be increased and ending stocks reduced, for both corn and beans. March 31 quarterly grain stocks & intended acreage is looming and will set the price tone heading into April­ and May. 

The weekly COT report out Friday showed that managed money were net sellers last week, but remain long 348,000 corn contracts and 126,000 bean contracts. 

Opening Calls:

Corn: up 2-4c

Beans: up 8-12c