1/7/2021

Jan 07, 2021


1/7/2021
The markets finally took the long, over-due breather today that we have been expecting. Coming out of the coffee break this morning, corn and beans both spiked lower as an immediate reaction to the export sales report. Corn export sales were reported within trade estimates at 749k metric tonnes but a poor number of 37k metric ton of beans vs. an expected minimum of 400k sent beans trading 19 lower and corn 8 lower at the day session open. This could be a sign of higher prices starting to be reflected in demand, although, despite the recent 70 cent rally, US corn remains the cheapest globally. Along with the weekly export sales report, grain markets were also pressured by a rebound in the dollar index and reports that planting in Argentina appears to be at a normal pace despite dry conditions. After the smoke cleared from the export sales report, funds continued to add to their long positions. Also offering some support was a daily sale announcement for beans; 213,350 tonnes for the 20/21 marketing year and 130,000 tonnes for the 21/22 marketing year, both to an unknown destination. I am expecting trade to stay range bound leading up to the WASDE report on Tuesday.

Read More News

Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off. 
Aug 12, 2025
The USDA report today didn't treat the corn market very well.  Both corn acres and yield were higher the result has corn carryout over 2.1 billion bushels.  Corn yield was pegged at 188.8 bpa vs an estimate of 184.29 bpa.  How high is 188.8?  Well…the previous record was 179.3.  Planted corn acres were put at 97.3 million.  Total corn production is estimated at 16.742 billion bushels, which is 763 million more than the report estimates.
May 12, 2025
News broke Sunday that the USA and China have agreed to ease tensions and lower tariffs.  The US is lowering tariffs on Chinese goods from 145% to 30%.  China is lowering their import tariffs from 125% to 10%.  Talks will resume in the coming weeks.  This news had stocks, grains and oil higher overnight. Then of course we had a USDA grain report come out at 11:00 this morning.  That was also a bit friendly.