4/21/2022

Apr 21, 2022


4/21/2022
After trading lower overnight, soybeans recovered to finish 2-7 higher on the day on simple money flow in.  After an extremely bearish acres report last month, soybeans have made a miraculous recovery and are only a couple strong days from surpassing contract highs set on the evening Russia invaded Ukraine.  Corn was lower out of the gate overnight and was not able to trade unchanged anywhere.  After rallying $1.00/bu over the past month with hardly a look backwards, we are well past overdue for a correction and a pull back on the board lining up with planters hitting fields would make sense.  The past two years, Iowa has planted 38-40% of its corn crop the last week of April and with Iowa farmers buying ground for $20-25k/acre, they will plant their corn even if conditions are not perfect.  Long range weather outlooks show above-average temperatures likely for this summer (extra GDUs!).  The weekly export sales report applied to some weight to trade, as well, with old crop corn sales underperforming with 879k tonnes sold and old crop soybean sales on the low end of the trading range at 460k tonnes sold.  New crop sales for corn were on the weak side but new crop soybean sales outperformed the trade estimates.
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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.