Closing Market Report- 5/19/21- Broad Selloff Seen on Wednesday, Corn Did Rally


It was a broad selloff in the markets on Wednesday as everything from the stock market and cryptocurrencies to energies and commodities were affected. Early Wednesday, the Wall Street Journal reported a resurgence of COVID-19 cases taking place in many Asian countries where the virus was earlier thought to be contained. July corn managed to finish unchanged on a day when nearly all other commodities traded lower. That was the one lone bright spot of the day. The prospect for good rains in the Northern Plains and Canadian Prairies, and decent rains for Parana and Mato Grosso do Sul, are bearish inputs.

China buying has been impressive. USDA’s Foreign Agricultural Service reports two new-crop corn sales on Wednesday: 1.360 mmt (53.5 mb) of corn sold to China for 2021-22, and 142,500 mt (5.6 mb) of corn sold to Mexico for 2021-22. That makes a total of 374.7 million bushels of new-crop corn to China just since May 5. Ethanol production for the week ending May 14, 2021, surged more than expected — up 52,000 barrels per day (5.3%) to 1.032 million barrels from 979,000 the week prior. The trade was looking for a slight gain of 1%. Ethanol inventory, expected to have a slight draw, instead remained unchanged at 19.4 million barrels.

There was light cattle market trade on Wednesday and the cattle and hog markets were mixed to slightly higher, held down by the broad selloff in the market trade.

Farm and Ranch Director Jesse Allen has our closing update:

Also, more analysis with Jesse Allen and Mike Zuzolo of Global Commodity Analytics on today’s episode of Market Talk below: