Grain > Commentary > 10-27-2021

10/27/2021

Oct 27, 2021

10/27/2021
Softer overnight and a sharp move higher after the 8:30 market open.  Corn and soybeans climbed for the first 90 minutes of the day session before fading off their highs.  Corn settled in comfortably for the remainder of the day trading 6-11 cents below their highs and soybeans narrowly avoided a bearish reversal on the chart, eking out a finish of 1-2 higher but 15-18 cents off the day's highs.  The biggest question of the day is "why?"  Honestly, it doesn't feel like the market picture has changed much this week, if at all.  Money wanted to buy, so they bought, citing "strong corn demand."  The price action in soybeans today is exactly why we always encourage implementing sell orders as a way to let the market work for you.  Weekly ethanol production set a new weekly all-time high with 1.106 million barrels per day, production was offset with a decline in ethanol stocks of 155,000 barrels to 19.93 million barrels.  This does suggest demand is keeping pace with record production.  After a big reversal off of fresh contract highs yesterday, spring wheat finished in the middle of a 20-cent range today.

Below:
The first line of resistance on the corn charts is now the trend line of lower highs, and it is a line of majorly stiff resistance.  The pattern is similar for all the 2021 crop contract months.  Nudging up against this trend line like we did today is a great selling opportunity.corn-chart.jpg

Read More News

9/12/2025
Sep 12, 2025
USDA report day.  Corn and beans were trading higher pre-report on thoughts of a reduction to yields.  Well....we got what we were thinking but the USDA decided to throw a twist into the mix.  The 25/26 corn yield decreased slightly less than expected by 2.1 bu to 186.7 bpa, but they gave us the largest planted acreage shift on this report in at least the last 20 years (+1.4 mil acres) spurred an increase in production to 16,814 mbu.  25/26 ending stocks were slightly lowered by 7 mbu to 2,110 mbu. 
8/21/2025
Aug 21, 2025
Today the market ran higher on rumors for positive SRE announcements coming soon.  Bean oil was up over $2.  Beans finished the day up 20 cents at 10.56 Nov futures.  There is a chance we could make a run at the 10.74 Nov highs from back in June.  If we get there, I am a seller.  Bean basis remains in the garbage, so a run higher in futures doesn't help that either.  We still don't have a trade deal, so I think any rally is short lived at this time. 
8/15/2025
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.