5/21/2021

May 21, 2021


5/21/2021
Markets were lower overnight and finish the week in the red quietly.  We started this morning with a fair amount of volatility but, by mid-day, trade was being conducted in an orderly fashion.  Corn and soybeans tried to trade higher for a portion of the day but it was short lived.  Demand for corn remains incredibly strong but, with some parts of the growing regions getting rain, our ability to rally remains limited.  More US corn production estimates showing large increases in acres over the USDA's planting intentions report is also hanging over the market, with one standout penciling in 96 million acres.  We may be establishing some range trade as we get closer to a new month, with the futures trying to catch a foot-hold at the price levels we were trading prior to May.  No USDA flash sale this morning.  Weekly closes: July corn 15'6 higher, Dec corn 3'6 higher, July beans 60 lower, Nov beans 40'2 lower.  Open interest in the front month continues to decline in both corn and soybeans.  China's new crop corn shopping spree may be more of a hedge against a possible crop failure in Brazil.  Continue to be diligent in your new crop marketings, smaller profit margins are still profit.  Some of the heat has been removed from the weekend forecast and we should return to average temps by the middle of next week.  Rain will be more than welcomed after temperatures in the upper-80's.  Have a great weekend!

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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.