Key reversal in corn but will it hold?

Overnight- corn, soybeans and wheat futures are all higher with soybeans leading the way.

Yesterday, corn posted a key reversal after putting in a new low early in the day then rallied to finish 8 cents higher on the day.

Corn settlement was higher than the last two trading days.

The last 3 trading days have been high volume days with yesterday being the highest of the three.

This could be a signal that farmers priced or rolled much of their basis contracts already, taking some hedge pressure off the market.

Overnight, someone bought 10,000 July 1280 calls in the soybeans.

This is likely a fund the is trying to cover some short futures exposure and may be an early sign of a sentiment change.

We will be watching for more signals.

Traders may be looking to start covering positions going into next month’s planting intentions report.

China has been buying corn from Ukraine. Reuters has reported that China bought 240,000 tons of corn for March-May loading.

Bottomline

We saw some positive action yesterday and overnight across the grain and oilseed complex and now we need to see follow through or at least keep the recent gains. We would like to see May corn move above 4.34 and May beans above 11.71 to turn sentiment. NFC Grain Comments Options -new (5)