11/5/2021

Nov 05, 2021


11/5/2021
Corn was 1-2 higher and soybeans 1-2 lower for a major portion of overnight trade.  Steady trade gave way to risk-off almost immediately at the 8:30 open this morning and put the daily lows in just before market close.  The biggest headline today was Goldman Sachs beginning their rolling period in corn from the December to March futures, beyond that, wasn't much of anything new to trade.  Situation in Brazil appears very favorable for crop development, and much like the United States, likely harvested much larger corn and soybean crops than expected.  Brazil soybean export values have dropped significantly and are at just a few dollars/tonne premium to the U.S. (about 5-10 cents/bu.).  November WASDE report next week and FSA is supposed to be releasing their November acres report the same day.  We never did get an October report from FSA so should we expect one this month?  Any talk about additional corn acres has gone silent and my tin-foil hat is telling me that there is a good possibility that a very unfriendly corn acres number from the FSA is lying in wait.  Weekly cash closes: corn down 15 cents, and soybeans 39 cents lower.  Looks like mother nature is going to give us a handful more unseasonably nice days to help in the final push to finish harvest.  Have a great a weekend.

December 22 corn finished the day about 18 cents off a fresh contract high on Tuesday but is still well above its very steep up-trend.
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Soybeans have some technical support on the charts at the 1200 level, matching their most recent lows. November 22 soybeans also have their 200 day moving average just above at 1202. Could see some money come in and buy it there. I'm expecting old crop-new crop spreads to weaken significantly after next week's reports.
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