Friday May 3, 2024

• It may be raining but at least we have green across the board to end off the week
• We saw sharp rallies Thursday leading into today
• It is estimated that fund traders covered around 20,000 contracts of net short positions between corn, soybeans and wheat which has most definitely helped with the rally we are seeing today 
• Heavy rains continue to disrupt the corn and soybean harvest in the Brazilian state of Rio Grande do Sul
  • There is still more rain to come over the next week. Traders believe the unharvested soybeans will see massive losses
• Buenos Aires grains exchange cut the forecast for the Argentine corn crop by 6.1% due to damage caused by leaf hoppers. The leafhoppers have caused $1.3 billion in damages. 17% of the corn acres are being described as “unharvestable”
  • Unfavorable weather could also affect Argentina’s soybean crop
• The July corn contract was able to blast through the 100-day moving average. It is hard to find a solid fundamental story that is supporting the corn market. Yesterday was the first time corn touched the moving average since October of 2023.
• Yesterday the December 24 corn contract closed above the 100 day moving and got within half a cent of the high we saw in March and was able to surpass it in the overnights.