8:15 AM Market:  Corn up 3 old/7 new;  Beans up 11-12.

Overnight markets opened higher across the board then weakened as we got closer to the morning trade break. 

Trade concerns over dry weather in areas of the Northern half of the central corn belt and north into portions of the Northern US plains adding to the ongoing watch on Brazils Safrinha crop and rumors that China is back in looking to book more new crop US corn.  The impressive gains in planting progress by the US producers now need some warmer weather and precipitation to help give both corn and bean crops a good start to the growing season.       

Brazil’s SB export line-up declined 1.6 MMT/60 mbu the past week and is now only slightly above last year.  Looks like the country will start September with about the same stocks as last year—fall U.S. export implications?

Cash corn markets east to west remains strong – minimal old and new crop movement so far this week, end user/consumer still working hard to get June forward needs covered.  Wheat/corn spread July SRW vs July corn has tightened in almost 60 cents since a week ago which could be placing a cap on Eastern/Southeastern corn basis going into early summer.  KC HRW/Corn spread traded at even money yesterday and in many cases wheat “pencils” into the feeder, availability of enough wheat in some areas of the Southwest US is hindering some feeders from making a significant change in rations for the time being. 

A top executive at Argentina's Chamber of Port and Maritime Activities said low water levels along the Parana River are reducing loads by 5,500 to 7,000 mt per ship.  Argentina's Parana River, the grains superhighway that takes soy and corn from the Pampas farm belt to the world, has gotten so shallow that it has started "trimming" international shipments just as the country's export season gets underway. The level of the Parana at the export hub of Rosario, home to some of the biggest soy crushing plants in the world, was a scant 0.92 meters on Tuesday, according to the Coast Guard. Between 1996 and 2020 the median depth of the river at Rosario in April was a much deeper 3.58 meters. (Zero is a reference point used by ship captains rather than the actual depth of the waterway)

Brazil's ANEC on Tuesday forecast no Corn exports during May 2021 compared to the 29,991 mt in April; the group also forecast May 2021 Soybean exports at 11.965 mln mt off from the 15.6 mln mt shipped in April.

On a sad note, the CME Group announced yesterday that it will not reopen its physical trading pits that were closed last March due to the outbreak of the COVID-19 pandemic.  Though the volume in straight futures trades has been entirely on the Globex electronic system for years, there was hope that open outcry would return to help with liquidity and transparency in options trade.  It marks another end to an era in Agriculture.

Board rallying further prior to morning pause.

Can managed money, S Am drought continue rally?

Open outcry pits will not reopen for options at CBOT.

Corn - $3.88 Spring    

Beans - $9.17 Spring