2/22/2021

Overnight, corn was firmly higher on the assumption China had re-entered the market and beans were mixed on pressure from an ever-advancing harvest in South America.  Soybean harvest in Brazil is currently at 15% complete vs 31% complete last year at this time.  Some parts of the country are lagging more than others.  Brazil's largest soy producing state of Mato Grasso is currently 35% harvested vs the 5-year average of 58%.  Argentina and Southern Brazil are currently dry while the rest of Brazil is wet.  The weekly export inspections were supportive.  Corn had another good week with 1.232 billion tonnes inspected and a slow harvest in Brazil appears to be helping extend our soybean export season with 722k tonnes of beans inspected.   In terms of today's price action, we were strongly higher in the last hour of the session.  Trade as a whole eased off after the morning break before setting new contract highs in new crop corn and beans this afternoon and settling just below those marks.  Even with record total acres and a trend-line larger yield, the USDA outlook shows the crop balance sheets will be tight going into 2022.  Weather will be huge this spring, any extra dryness or precipitation will most likely have an amplified effect on the market.