2021.04.20 CFS Grain Update
Apr 20, 2021
Earlier this month the April WASDE Report left the soybean ending-stocks at 120 million but did lower the corn ending-stocks to 1.352 from the previous 1.502 billion bushels. Tight stocks and the lower March Acreage Intentions of 87.6 million soybean acres and 91.144 million corn acres there are concerns on stocks being even tighter a year from now if we do not see trendline yields and continue the export program we had this year. Our last December 21 recommendation to sell 10% at 4.98 futures just filled to get to 35-45% sold. Our soybean recommendation to sell 10% at 12.98 November 21 futures to move to 35-45% sold just filled. We have not had any official recommendations for new crop 22 corn, but it has traded around 4.75.
Currently ethanol and feed mills are the hot basis markets, with basis being positive in some locations. And with the inverted corn and bean markets we are seeing basis premiums on the July versus the May.
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Please join us as we celebrate the opening of our new feed mill in St. James. We are excited to provide mill tours with our experienced staff and guides, we are eager to share information about our new facility and it's fit for the industry and the community. Join us after for a pork chop dinner and a chance to meet with other members of the CFS team.
Planting and weather conditions are the name of the game currently. With planting progress looking very favorable and the weather forecast showing above normal temps and below normal precipitation for much of the corn belt all signs point to very good planting conditions. With that, we gave up yesterday’s gains on old crop and put in some new lows on December corn.