10/19/2023

Oct 19, 2023


After failing on the three previous attempts, December corn finally pushed through the $5 level in fairly strong fashion.  While there were some rumors of export business early on, today's trade seemed to be driven by funds exiting length in the cattle trade and unloading short corn positions.  Similar to what we see on the soybean charts, corn has some hurdles to jump just above the current level.  On the December chart, we have the 100-day moving average at 509, a gap to fill at 525, and the 200-day moving average at 536.  November soybeans set a new high for October as the sun rose this morning and were sold off around mid-morning on hedge pressure, down to the 1300 level where money was more than ready to protect and buyers came back in swiftly.  On November soybeans, resistance sits at the convergence of the 100- and 200-day moving averages near 1317'4, trade and hold above that and we have some room overhead to run.  Given our -60 basis, cash sales in the $12.60-12.65 area are a healthy start.  Upside potential towards the $12.90 cash area is realistic at this time.

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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.