Mark's Market Talk

Apr 19, 2021

Last week grains were higher as cool weather slowed planting in the Midwest. May corn was up 9 cents while Dec corn was 16 higher as bear spreading continues. We have known for some time that the old and new crop prices would come together, it was just a matter of how the adjustment would occur. For the time being it appears they may meet somewhere in the middle. Old crop has held its value quite well, but now we need a new spark like a big sale announcement. Otherwise, the lead month will trend lower. May corn was over 6.00 at one-point last week, but it did not close above 6. It has been 2013 since corn was that high. The weather news has shifted to the new crop. There are concerns of planting delays here and continued hot dry weather in South America. Local new crop corn was in the 4.70 range last Friday which is getting some attention from producers. Of course, the question has been will we see 5.00. The correct answer at this point would be, maybe. The forecast is cool but there is not much rain predicted. The is a slew of planters sitting around ready to go as soon as the producer decides it is time. That will probably be this week and given some nice days we all know how fast this corn crop will get planted. May beans ended last week 30 cents higher while Nov was a short 10 cents higher. Several times in the past month or so it looked like old crop beans were ready to throw in the towel. Then we get a week like this and they come roaring back. The veg oil market was the driver this week as canola oil hit some new highs dragging soy oil along for the ride. However, meal did not move higher and for beans to hold their value meal must stay positive. The focus is slowly shifting to new crop beans as traders watch for indications that beans will get more acres this spring. The cool weather that is slowing corn planting may get beans a few more acres. But if those acres did not already have some nitrogen on them, the producer was wishy washy in his plans anyway. More answers will become apparent as we move into the middle of spring.