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Morning Market Review for April 30, 2021


Losses underpinned by tightening global supplies, lingering drought conditions
Corn down 2-4
Wheat down 2-10 cents
Corn
As April comes to a close, corn futures are slated to end the month up 15% - the largest monthly gain for the contract in over two years. As the May 2021 contract expires, traders are expecting deliveries on the first notice day to be minimal against the backdrop of tightening global supplies and strong cash demand.
Corn prices moved $0.02-$0.03/bushel lower this morning as a sunny weekend forecast encourages planting and germination rates. The market is tightening. Demand is strong and the market is still trying to figure out production in South America and the U.S, said a Melbourne-based grains trader told Reuters overnight. ....

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Brazilian crop expansion spurred by higher prices


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They’re not making any more farmland except in Brazil, where the government projects it will add 19 million more crop acres in the next decade.
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Jun 15, 2021 to Jun 17, 2021
Farmers are familiar with the expression, “They’re not making any more farmland.” It’s true just about everywhere – except Brazil. Brazilian territory continues to be transformed into cropping acres as the world increases demand for animal protein. To be more precise, areas that used to serve as livestock pasture are now being transformed into cropping areas.
A study from the University of Illinois, “New soybean record,” points out that the back in the ‘90s, the southern region of Brazil, especially Paraná and Rio Grande do Sul, had the original concentration of most soybean acres. But with the search for new and larger areas of land to expand the production, farmers started migrating north to the midwestern ....

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