Late in the week, March corn and beans futures were trading at higher values than May contracts, reports AgWeb.
Since this is happening in the March contract delivery period, it means demand for the physical commodity is extremely high. Also, basis is stronger for both commodities throughout the Midwest.
This suggests the market is begging for grain now and futures may have to work higher to incentivize farmers to sell. However, if futures move too high, it could lead to increased South American export demand and US export cancellations.
Read the full report here.
