11/15/2021

Overnight trade for corn and soybeans was two-sided but mostly lower.  The USDA confirmed sales this morning of 264,000 tonnes of soybeans to Unknown for 2021/22 and 198,200 tonnes of corn to Mexico split between 2021/22 and 2022/23.  Spring wheat trading 20-30 lower throughout the session applied some pressure to the corn market today.  Reuters reported this morning that China was in to purchase an estimated 300,000 - 700,000 tonnes of Ukrainian corn (roughly 12-27.5 million bushels).  It's a bit odd China would purchase that large of a volume at the more expensive Ukrainian values.  There was a comment that it may have something to do with how the USDA reports exports sales and how those specific announcements can drive the market higher almost immediately.  Soybeans were 10-13 higher, supported by soybean meal.  Meal futures have gained $25-30/ton in the last 3 trading days.  Weekly export inspections for corn and wheat outperformed trade expectations with 856k tonnes of corn and 389 tonnes of wheat inspected.  Inspections for soybeans were mid-range at 2.074 million tonnes.  In the first 10 weeks of the marketing year, 524.81 million bushels of soybeans were shipped.  That is approximately 24% of the USDA's forecast for the year.  At the same point last year, the US had shipped 35% of its 2.05-billion-bushel forecast.

December corn eased away from trend line resistance today.  Will likely see the front month return to the 550’0 area if unable to trade through and manufacture a close above this level.
January soybeans returned to trade near a level of heavy resistance over the past month.  Similar to corn, need a strong close above these values to break higher or will likely see a 30-40 cent sell off.