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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Jun 11, 2026
The USDA report was noneventful and now we wait for the stocks and acres report on June 30th.  25/26 corn carryout was estimated at 2.145 billion vs an average guess of 2.138 billion.  26/27 corn carryout was estimated at 1.960 billion vs an average guess of 1.947 billion. 26/27 World corn carryout was estimated at 281.22 Million Tonnes vs an average guess of 278.51.  That is up 4 Million Tonnes from the May USDA report. 
May 12, 2026
Today was USDA report day.  Old crop corn carryout was pegged at 2.142 billion vs the average trade guess of 2.131 billion.  That is a 15 million bushel increase from the April report.  New crop 26/27 corn carryout was guessed at 1.957 billion vs an average trade guess of 1.933 billion.  The World old crop corn carryout was put at 296.95 million tonnes, vs an average trade guess of 296.33.
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.