12/21/2021

Corn and soybeans finished overnight session mixed with little excitement.  Soybeans were strong at the 8:30 open this morning, with the front month trading above 1300'0 for the first time since the first half of September.  Highs were set for the day when updated extended forecasts for Argentina and Brazil both added good moisture.  Beans did manage to shake off most of the weakness, closing strongly above the 200-day moving average.  Prior to today's trade session, US corn and soybeans were already at a premium to Brazil.  Export sales are on track with averages but there is a large number of unshipped corn bushels.  With corn export shipment pace already backed into a corner and soybean pace just meeting the minimum, something will have to give between basis and futures when South America hits full harvest.  I can barely tell if it rains the next county over, so I'm definitely no expert on South American weather, but I'm not even close to betting on a drought in a rain forest.  Corn did not share the immediate strength seen in soybeans today and was mostly a reluctant follower, making a lazy effort at the $6.00 mark.  March corn did trade a new high for the move at 599'2, within reach of taking out the next high on the chart at 599'6.  Time to evaluate what you really need to keep unsold at home as homerun soybeans.  A very fitting first day of winter for us!

March corn within reach of 600’0 after today’s strong close.
A strong technical day for Soybeans with January closing above its 200-day moving average for the first time since late September.