12/28/2022

Dec 28, 2022


12/28/2022
Another day of strength in corn and soybeans. A relatively quiet overnight session gave way to a day session that featured money as an active buyer. Corn continued an impressive rally off its monthly low, ending the day nearly 50 cents above that mark. Soybean meal was the big mover today, up more than $15 on the most active contract. This was supportive to beans and corn. Managed money and funds are in the process of positioning themselves for month end/quarterly end/year end. On the fundamental side, there is not much to support this recent rally in corn. Ethanol and other end-users are not actively looking to purchase corn and the rail markets are quiet. Just a couple days after China announced they would be working towards opening up the country faster, they are already reporting that nearly 50% of passengers on incoming flights are testing positive for Covid. Truth or not, the markets need to take into consideration a possible retract to the announcement made earlier this week. Given where we ended the day on the charts, this is a spot to price some bushels, old and new crop.

Corn ends the day above the 200-day moving average and pushed up against its long term overhead trend line. IF trade is able to break out of the wedge to high side, the next objective would be the November highs just above the 700’0 level. A failure here would see a sell-off likely down near the 20-day moving average at 654’3.
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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.