Closing Market Update- 4/22/21- Grains Surge Higher, When Will The Buying Stop?


It was another wild day in the grain trade on Thursday. July corn closed up its 25-cent limit Thursday, accompanied by strong gains in wheat, soybeans and soy products. Rising cash bids of corn and soybeans continue to spread throughout the country as commercials vie for limited supplies. The soaring U.S. corn and bean basis ahead of the May option expiration has short call traders scrambling to get out of their messes. Funds have once again added to their net long, buying sizable corn, wheat, soy and product futures.  Tight old-crop supplies of both corn and soybeans, bullish weather in Brazil and expanding fund buying has kept the rally going, with daily new contract highs seeming to be the rule. With corn and soy markets getting overbought, caution is advised, but so far that has not hindered the move higher.

With corn prices climbing higher, the cattle contracts are diving lower as input costs are becoming alarming problematic. The lean hog contracts are trying to keep their upward momentum, but the complex is being pressured in their nearby contracts. There’s been a light cash cattle movement in the North at $192, but otherwise the countryside is quiet. Overall, livestock were lower today once again.

Farm and Ranch Director Jesse Allen has the closing report:

Jesse Allen also has a great discussion with John Heinberg of Total Farm Marketing today on Market Talk, recapping the grain trade. You can find that just released episode here: