Jan 05, 2023

Corn traded 4-5 cents either direction from unchanged and ends the day 1-4 cents lower. Considering it was an extremely quiet news day, soybeans traded a sizeable range, swinging from 7 higher to 18 lower before, again, finding a bid. They still end the day 7-12 cents lower but money seemed eager to come in just above the 50-day moving average and trend line support on the March chart. Wheat trade looks to possibly be building a base of support with short covering after a string of heavy losses. There were no sale announcements from the USDA this morning. Trade likes to talk about dryness in Argentina and early estimates expect the USDA to cut Argentine crop production by 5% in next week's report. What trade still doesn't want to talk about is how an excellent Brazil crop could keep total production in South America 10% above last year's tonnages. Downside in corn is limited considering the balance sheet will remain relatively tight and there is still time for China to come in with some needed export business. I am friendly beans only on the short-term, based solely on the current oversold conditions on the board.

We’re going to keep following the March corn chart. A simple trendline support day and a washout of holiday trade has been completed. Corn should not stray too far from current levels with funds and managed money waiting for the Jan 12 report.

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