Monday May 10, 2021

  • Widespread rains in the corn belt with a warming forecast us reminding the commodities market that the U.S. crops are off to a pretty close to ideal start 
  • Stats Canada March 31 wheat stocks came in at 16.2 MMT – down 14% from same time last year, canola stocks also down 38% from last year and corn stocks up 2% at 8.15 MMT 
  • Wednesday’s monthly USDA report on the mind of the market this morning as well maybe contributing to some of the sell off today with specs positioning before the report 
  • Overall main fundamentals remain
    • Strong demand for all commodities
    • Good start to U.S. planting (will get progress report this afternoon)
    • Regions of Brazils second crop corn are dry
    • Carryouts are tight and need good 2021 production form U.S. to get stocks back to a more comfortable level