5/5/2021
Joe Hoyle, Grain Marketing Specialist
May 5th Agtegra Morning Market Insight

Morning Market Insight

As of 7:45

Corn Up 2
Nearby corn is up 2 this morning while new crop corn is up 7 to start the morning after a strong day yesterday saw both finish .17 higher on continued dryness in Brazil and a strong cash market. Ethanol margins remain strong as demand has increased as crude oil prices continue to rise to their highest levels in 2 years. Harvest progress in Argentina remains behind due to wet conditions as they are currently around 20% complete compared to a 30% average. Export sales to Mexico and Unknown destination of 331k metric tons were reported this morning with most of that being new crop bushels. China did cancel 140k metric tons of old crop corn as well.

Soybeans Up 13
Nearby Soybeans are up 13 again this morning with new crop up 11 after a very strong day yesterday as soybean meal and oil prices continue to climb. Argentina harvest remains slowed by rains and logistic issues. Malaysian palm oil production and exports are expected to increase for April while stockpiles are expected to drop slightly. Domestically processors remain hungry as oil demand remains high here in the US as the country continues to reopen from the pandemic.

Spring Wheat Up 3
Spring wheat is up 3 and winter wheat is up 1 to start the morning after it was pulled higher by the rally in corn and beans yesterday. May futures closed at the highest nearby settlement price in nearly four years. Rain showers over the next week are expected to develop over HRW territory, helping to improve the conditions of the winter wheat crop. In South America, Argentina is expected to have total wheat crop production at 19 million metric ton, which would equal record production from a couple years ago.