10/22/2021

Oct 22, 2021


10/22/2021
Another big surge across the wheat trade with the Spring Wheat front month eclipsing the 1000'0 level for the first time since 2012.  Big buying interest in wheat and good ethanol margins propped up corn to finish 3 to 5 higher and go into the weekend on a strong note.  Demand likes to put together a bullish outlook for corn but ethanol profitability through the entire marketing year is more important than what we see right now.  December corn has tapped out at the 540'0 mark each of the last 3 days but has also posted higher lows each of those days, forming a small bull flag on the chart.  A small break higher is possible next week.  Soybeans in general have been weaker as of late and continued this trend today.  November options expired today and the contract will go through delivery and expiration over the next few weeks.  Charts continue to give a bearish bias for soybeans.  The wheat market as a whole has some interesting dynamics going on.  The market is begging for someone to sell but an actual bid doesn't seem to exist.  Today's big move higher likely included some folks simply getting squeezed out.  Weekly cash closes: corn up 9 cents and soybeans 4 cents higher.  Weather-wise, we look to be heading down towards more seasonal temps through this weekend and next week. 

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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.
Mar 31, 2025
USDA reported corn planting acres at 95.326 million acres of corn, which would be up a little more than 5% from 2024's final number and the second highest March figure of the last ten years behind only 2020's estimate of 96.99 mil acres.  US corn stocks as of March 1st were seen at 81.51 billion bushels, which was exactly what the trade had expected and was down just over 2% from March 1 of 2024.  USDA said farmers intended to plant 83.495 million acres of soybeans, which would be down about 4% from last year and was just a hair smaller than what the trade was looking for.  March 1 soybean stocks were pegged at 1.91 billion bu's, which again was nearly exactly as the trade had expected, and was up 3.5% compared to March 1, 2024.