Yesterday was another strong one with new highs made in both corn and soybeans. Last night? Same story; new highs were made in old crop corn, new crop corn, old crop beans and new crop beans. At some point here we will see this market take a break, but it sure hasn’t happened yet.
So not only are we in the midst of a weather story, but the last couple of days have also been filled with rumors of China looking to buy additional U.S. corn. When you try to find the bearish (negative) side of these markets, you probably look towards the reports that China is trying to ration corn use in their feed. While at first that may seem bearish (if they are successful), when you see China publicly discussing the change in rations, that hints that their corn stocks are probably just as short as thought, if not shorter.
In case you need another bullish demand story, The ethanol sector’s margins are the highest they’ve been in a while. As the U.S. opens back up post-COVID, ethanol stocks/inventories have now slid lower for nine consecutive weeks, even as plants ramp production back up. If you are looking for a corn demand sector to slow down and start using less corn, I don’t think you can look towards the ethanol side, at least not today.
One of these days I will find something bearish to talk about, I promise.
Corn is 3 to 6 cents higher
Soybeans are 10 to 15 cents higher