12/15/2021

Dec 15, 2021


12/15/2021
After a quiet overnight session, corn and soybeans attempted to surge higher after the morning break, with corn trading up to 6 higher and soybeans 7 higher.  With some traders already sidelined for the holidays, the algorithms are full steam ahead in the lighter volume, creating some interesting volatility and price action.  The current technical objective on the front month for corn is to take out our most recent high of 596'6.  After failing to do so, the market quickly faded lower and corn spent the remainder of the day in the red.  The USDA 8 am sale announcements remain quiet for the week.  Weekly ethanol numbers were slightly unfriendly with production down 3,000 bpd to 1.09 million bpd and stocks increasing 419k barrels to 20.88 mln bbls.  The NOPA crush numbers for November were also released today showing 179.46 million bushels crushed, this was down from November of 2020 but still second highest crush all time for month of November.  This was below the trade average guess of 181.64 million bushels.  Soy oil stocks came in at 1.832 billion pounds, down fractionally from October and below the trade estimate of 1.903 billion pounds.  If you have not priced some old crop corn in, or near, this 590'0 futures area, I strongly encourage you to do so.  Continue to work sell orders at feel-good levels through the holiday season.  I expect to see more price action comparable to today's and a sell order can only fill if it is working.  Looks like we're in for some crazy weather over the next 24 hours, stay safe!

March corn 5 minute chart.  Trade volume in corn went down significantly and price action went flat between 11 a.m.-1 p.m., almost like flipping a switch.
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Soybeans have potential for a big move next week.  Jan through July contracts are all approaching a trendline bowtie on the charts which could force the market either direction.  My bias is lower.

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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.