12/1/2021

Dec 01, 2021


12/1/2021
A fresh month brought around some fresh length interest for funds and managed money with corn and soybeans recovering a solid portion of the prior day's losses with corn gaining back 1-5 cents and soybeans finishing 5-11 cents higher.  There were recoveries across several markets today after yesterday's broad sell-off.  Fundamentals have not changed much, if at all, this week, meaning the money flow is the path of least resistance.  We had another 8am sale announcement from the USDA this morning of 150,000 tonnes of corn for delivery to Colombia in the 2021/22 marketing year.  The weekly ethanol report showed output has cooled off with production down more than expected to a 7-week low of 1.035 million barrels per day and stocks were increased by 137,000 barrels to a 12-week high of 20.3 million barrels.  This does follow a seasonal down-trend and after production surged through harvest, production and stock numbers have fallen into line with the past 5 years.  An early report from the University of Illinois is estimating a 3% increase in US corn acres for next year.  That would put the United States at 96 million acres of corn next year.  The same report estimated a 1.7 million decrease in soybean acres to 85.5 million.  Some excellent weather to begin the final month of the year.  Make sure to try and enjoy it!

Continuous chart comparing corn and urea futures.  Courtesy of Nick Paumen at CHS Hedging.chart.jpg

Read More News

Apr 24, 2024
Profit taking was the feature of corn and soybean trade after corn rallied 20 cents and soybeans rallied 46 cents over the past week.  Spread correction was also seen today with May price spreads widening back out 1-2...
Apr 23, 2024
After struggling a bit on the tail end of overnight trade, corn and soybeans traded steady higher and looked their most firm heading into today’s close. After chugging higher for a third consecutive day, we viewed some more...
Apr 22, 2024
Some really nice follow-through after Friday's recovery resulted in some key technical signals for trade. Each pullback throughout the day was met with some fast buying. Corn and soybeans followed wheat's lead. Wheat...