4/21/2022
Apr 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.