11/16/2022

Just when it looked like we were ready to turn the market around following yesterday's war headline, bullish sentiment for the market was vaporized almost immediately.  Conflicting reports over what really happened between Ukraine, Russia, and Poland pressured the markets to trade exclusively lower throughout the session.  Corn has managed to hold the 650 level and soybeans have held 1400, so far.  These areas are important to maintain as we go towards December and into our final production report in January.  Weekly ethanol data showed output down 40,000 barrels/day to 1.01 mln bpd.  Stocks were also off, dropping 894,000 barrels to 21.3 mln bbls.  The USDA announced two sales this morning.  First, 150,000 tonnes of hard red spring wheat for delivery to Iraq during the 2022/23 marketing year.  Second was a large sale to Mexico that totalled 1,866,900 tonnes of corn.  1,242,060 tonnes for delivery in 2022/23 and 624,840 tonnes for delivery in the 2023/24.  While on the surface this large sale may appear supportive, business to Mexico is almost entirely routine.