10/1/2021

Follow through buying in wheat after yesterday's USDA quarterly grain stocks report supported the corn market to finish either side of a nickel higher.  What we learned in yesterday's report and today’s price action in corn did not match up with each other.  With some surprisingly good soybean yields across the grain belt (including some impressive local averages), we need to keep in mind that a national record corn yield, or close to it, is in the realm of possibilities for this year's corn crop.  There's still a very good possibility we add another 1 million acres to this year's corn production.  December 2022 corn futures shrugged off yesterday's bearish report and continued their march back towards the contract high, closing within 3 cents of that mark today.  If you have not sold any 2022 corn, this is a great place to start.  It is still early but USDA demand estimates for corn versus the current pace is already worrisome and grabbing 530 futures one year out is a good mistake.  Soybeans ended the week suffering from a USDA hangover and harvest pressure.  Throughout the next 12 months, usage does not appear to be shrinking but sizeable growth in the global soy supply appears to be inevitable.  Brazil is expected to see a large increase in soybean acres starting NOW with planters just beginning to roll.