3/17/2022

Mar 17, 2022


3/17/2022
Corn and soybeans bounce back after spending a few days deep in the red.  This should be viewed more as a technical bounce as we didn't have any big fundamental changes since yesterday.  Simple money flow: overbought on the short term turned into oversold on the short term.  Front months for corn and soybeans climb back above their 10-day moving averages which has been support for much of the past month.  This morning, the USDA announced the sale of 136,000 tonnes of corn to unknown for the 2021/22 marketing year.  With market movement bigger on the front end, new crop corn and soybeans remain reasonably within reach of their current contract highs.  Weekly export sales were strong for old crop corn with 1.836 mln tonnes sold.  Old crop beans put up a solid number with 1.253 mln tonnes sold.  Totals for US corn and soybean export sales well exceed the pace needed to meet the USDA forecasts but logistically it will become difficult to get everything shipped within the marketing year.  Trading volume has thinned out dramatically over the past week.  With several traders sitting on the sidelines, it’s very possible for a few hands to push this market one direction or another.  This is a prime environment for working sell orders in an attempt to catch price spikes.  We have sell orders filling on a consistent basis throughout trading hours and if you would like to market your grain in this manner please contact your local Glacial Plains grain team representative.

Map has degraded a fair amount since last week with more extreme/exceptional drought area in the Texas and Oklahoma panhandles.  This was very supportive for wheat today.
drought-monitor.jpg

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Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off. 
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.