Grain Market Commentary
Friday, April 23, 2021
by Jacob Christy, Senior Service provider, The Andersons
An enormous week for corn costs that noticed entrance month futures rise 74c from Friday’s shut. New crop not left behind both with CZ21 gaining 45c. Climate premiums each from the U.S. and Brazil together with tailwinds type the vitality and macro markets sparked huge cash circulation into the sector. This had corn up its 25c restrict Thursday with all contracts reaching new highs and long-term chart aims being met within the continuation.
With this week’s rally entrance finish futures had been capable of shut a long-standing open hole within the continuation chart at 625. The highest of this hole had been an upside goal since futures pushed above the five hundred mark. Costs added 30c on high of that with Might reaching over the 650 mark. The extra extremely traded CN21 additionally scored a detailed above 625 yesterday, and after early revenue taking this morning, managed one other new contract excessive shut at present.
The contract excessive shut and upward momentum look to hold outdated crop larger subsequent week. Nonetheless, if we see a correction from at present’s excessive count on the mix of the faster exponential day transferring averages and the current runs principal Fibonacci band to catch breaks within the 563-591 vary. Even then, a detailed under the outdated congestion vary high at 550 is required to show momentum decrease.
The 2020-2021 bull market continues to speed up. Closing the continuation hole was an enormous feat, one which was met with much more shopping for. Together with costs, volatility additionally went by means of the roof. With volatility hovering and limits set to broaden each day worth ranges ought to solely develop from right here, setting the stage for a wild trip forward. Keep tuned.