Grain > Commentary > 5/12/2022

5/12/2022

May 12, 2022

The USDA announced the sale of 612k tonnes of corn to China with 68k tonnes delivered in 2021/22 and 544k tonnes delivered in 2022/23. Weekly export sales for corn were well under target with 193k tonnes in sales vs 350k tonne minimum estimate. Soybean sales were on the low end but within range at 144k tonnes. The monthly update for Brazil's crop production showed increases in both soy and corn. Barring any sort of disaster, the world's current soybean supply is ample. Soybean meal values continue to drop, now trading back under $400/ton, and soybean oil is at the mercy of crude oil. The pressure to own soybeans (physical or on paper) is all but gone.

-Supply and demand for old crop corn was unchanged this month. The eye opener here is the USDA dropping their yield from 181.0 in the planting intentions.
corn.jpg
-A 25 million bushel cut in soybean ending stocks with an increase in exports. No changes for the 2022 crop from the planting intentions report.
beans.jpg


Read More News

Jul 01, 2022
There was a brief attempt to trade in the green overnight but corn and soybeans gave way to weakness early on. That weakness turned into some harsh liquidation in soybeans that featured some 60...
Jun 30, 2022
Corn sharply lower and soybeans pull themselves out of the gutter to finish in the middle of 40-50 cent ranges. Trade averages nailed the corn stocks, corn acres, and soybeans stocks in today's...
Jun 29, 2022
Trade worked toward some final positioning ahead of tomorrow's stocks and acres reports. Corn saw a relatively modest 10-11 cent range throughout the day to mostly lower. Today was first notice...