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

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Feb 10, 2026
It was USDA report day today and it turned out to be a yawner.  The markets never really reacted to the report, and the grains finished the day about where they started with corn unchanged and beans up 12 on the day.  US corn carryout was pegged at 2.127 billion bushels vs the average trade guess of 2.227 billion.  World corn carryout was placed at 288.98 MMT vs the average trade guess of 290.48 MMT. 
Jan 12, 2026
Well, the USDA report had a bit of a surprise today and not in a good way.  Not only did they increase the 2025 corn yield, from 186.0 to 186.5, they also increased Harvest Acres from 90 million to 91.3 million.  That raised the total corn production to 17.021 billion, up an additional 269 million bushels from their previous estimate.  U.S. Ending Stocks are now estimated at 2.227 bbu, vs. 2.209 in Dec.  Report trade guesses were at 1.97 bbu.
Nov 14, 2025
It was USDA report day today and overall, it was bearish for both corn and beans.  Corn Yield was only reduced by .7 bpa down to 186 bpa.  The market was expecting closer to 184 bpa.  Corn production is estimated at 16.752 billion vs 16.814 billion in September.  They raised exports 100 million, which is debatable, but possible.  Ending stocks on corn were estimated at 2.154 billion bushels, which is up 44 million from September and about 29 million more than the market expected.