1/13/2023

Follow-through buying sustained slightly higher trade in corn and 3-9 cent higher finishes in soybeans out to the Aug 23 contract. Sept 23 soybeans and further out finished 1-5 cents lower. Yesterday's reports provided the market with a nice base of support with the surprise cuts in corn and soybean acres. The numbers feel massaged a bit to deaden the blow from reduced exports. The USDA is acknowledging the issue with U.S. corn export sales and we need to be realistic about that. Each day that passes without any large sale announcements is one less day we have to ship that corn. If we're not seeing an uptick in export sales with corn trading 6.40-6.55 on the board, should we expect to see these sales roll in at 6.70+ futures? In my opinion, it’s not likely. If trade wants to drive corn higher on the board, end-users and exporters will get increasingly defensive, weakening basis even further. Reminder: Glacial Plains will be closed on Monday, January 16 for Martin Luther King Day. The grain markets will remain closed until 7 p.m. Monday night.

A muted bullish response after a friendly report day. Corn travels back to the top side of its wedge pattern. No break out, yet.