2/10/2021

Feb 10, 2021


2/10/2021
The spec money that had driven up futures ahead of the report release continued to liquidate back out overnight and throughout the day.  Tomorrow may very well see us continue to fade back as corn and beans both need to correct a bit further to return to the trading levels we saw during the final week of January.  Markets will be closed Monday in observance of President's Day and with bean harvest well underway in Brazil, I would not expect fund and spec money to return until after the extended weekend.  Market news was light today.  We did have an 8am export announcement of a sale cancellation of 132,000 tonnes of corn to unknown.  In the big picture, this amount of corn shouldn't really move market but trade still did not like it.  There are already several analysts questioning the accuracy, which isn't surprising.  Corn export sales already at 85% of the total estimate (65% avg) is indicator that sales may be understated in this report by anywhere from 200-400 million bushels.  There is a similar story for beans developing, as well.  Many are putting our soybean carryout at 100 million bushels, with some having a number as low as 50 mln bu.  Even if accurate, it’s unlikely the USDA would publish a number this low.
 

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Aug 12, 2025
The USDA report today didn't treat the corn market very well.  Both corn acres and yield were higher the result has corn carryout over 2.1 billion bushels.  Corn yield was pegged at 188.8 bpa vs an estimate of 184.29 bpa.  How high is 188.8?  Well…the previous record was 179.3.  Planted corn acres were put at 97.3 million.  Total corn production is estimated at 16.742 billion bushels, which is 763 million more than the report estimates.
May 12, 2025
News broke Sunday that the USA and China have agreed to ease tensions and lower tariffs.  The US is lowering tariffs on Chinese goods from 145% to 30%.  China is lowering their import tariffs from 125% to 10%.  Talks will resume in the coming weeks.  This news had stocks, grains and oil higher overnight. Then of course we had a USDA grain report come out at 11:00 this morning.  That was also a bit friendly.
Mar 31, 2025
USDA reported corn planting acres at 95.326 million acres of corn, which would be up a little more than 5% from 2024's final number and the second highest March figure of the last ten years behind only 2020's estimate of 96.99 mil acres.  US corn stocks as of March 1st were seen at 81.51 billion bushels, which was exactly what the trade had expected and was down just over 2% from March 1 of 2024.  USDA said farmers intended to plant 83.495 million acres of soybeans, which would be down about 4% from last year and was just a hair smaller than what the trade was looking for.  March 1 soybean stocks were pegged at 1.91 billion bu's, which again was nearly exactly as the trade had expected, and was up 3.5% compared to March 1, 2024.