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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Sep 12, 2025
USDA report day.  Corn and beans were trading higher pre-report on thoughts of a reduction to yields.  Well....we got what we were thinking but the USDA decided to throw a twist into the mix.  The 25/26 corn yield decreased slightly less than expected by 2.1 bu to 186.7 bpa, but they gave us the largest planted acreage shift on this report in at least the last 20 years (+1.4 mil acres) spurred an increase in production to 16,814 mbu.  25/26 ending stocks were slightly lowered by 7 mbu to 2,110 mbu. 
Aug 21, 2025
Today the market ran higher on rumors for positive SRE announcements coming soon.  Bean oil was up over $2.  Beans finished the day up 20 cents at 10.56 Nov futures.  There is a chance we could make a run at the 10.74 Nov highs from back in June.  If we get there, I am a seller.  Bean basis remains in the garbage, so a run higher in futures doesn't help that either.  We still don't have a trade deal, so I think any rally is short lived at this time. 
Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off.