5/24/2023

May 24, 2023


After trading mixed overnight, it was looking like grains were going to rally on Wednesday but soybeans had fallen into lower trade by midday. July soybeans were able to pull it together late in the session for a 2 cent higher close on the day. Corn was able to hold a nice gain of 10 cents on the July contract but was only 2-3 cents higher from September on out. Weekly ethanol data showed production down 4,000 barrels/day to 983k bpd and stocks off 1.15 million barrels to 22.04 mln bbls. Both numbers were lower than expected. Corn use for ethanol is 40 million bushels below the seasonal pace needed to meet the USDA target for the year.

With 5 consecutive days of higher highs and higher lows, July corn has made a nice push back above the 20-day moving average. Will be interesting to see how the market wants to trade around the 600’0 level if we are able to challenge it. Given our +0.15 basis, cash corn in the $6.15-6.20 range is a good short term target here.
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Jun 11, 2026
The USDA report was noneventful and now we wait for the stocks and acres report on June 30th.  25/26 corn carryout was estimated at 2.145 billion vs an average guess of 2.138 billion.  26/27 corn carryout was estimated at 1.960 billion vs an average guess of 1.947 billion. 26/27 World corn carryout was estimated at 281.22 Million Tonnes vs an average guess of 278.51.  That is up 4 Million Tonnes from the May USDA report. 
May 12, 2026
Today was USDA report day.  Old crop corn carryout was pegged at 2.142 billion vs the average trade guess of 2.131 billion.  That is a 15 million bushel increase from the April report.  New crop 26/27 corn carryout was guessed at 1.957 billion vs an average trade guess of 1.933 billion.  The World old crop corn carryout was put at 296.95 million tonnes, vs an average trade guess of 296.33.
Feb 10, 2026
It was USDA report day today and it turned out to be a yawner.  The markets never really reacted to the report, and the grains finished the day about where they started with corn unchanged and beans up 12 on the day.  US corn carryout was pegged at 2.127 billion bushels vs the average trade guess of 2.227 billion.  World corn carryout was placed at 288.98 MMT vs the average trade guess of 290.48 MMT.