5/25/2022
May 25, 2022
Sell pressure in corn and soybeans after major production areas edge closer to finishing planting and show moisture and HEAT in the forecast this weekend, which could result in a fast start to a delayed crop. Much like yesterday, though, corn and soybeans found willing buyers on the sharply lower trade following the morning break. We still finished in the red on the day but well off the daily lows. Corn appears it may have stopped the bleeding for now. If we are able to make a return trip to the $7.00 cash level for new crop, one should at least consider making a sale there. The USDA export wire has been quiet the past two mornings with no sale announcements. Weekly ethanol data showed output up 23,000 barrels/day to 1.01 mln bpd and stocks off 79,000 barrels to 23.71 mln bbls. Other headlines today featured Russia announcing that they would create a corridor in the Black Sea and allow ships exiting Ukraine with food safe travel. In exchange, Russia wants some sanctions lifted.
July and December 22 corn traded below their 50-day moving averages this week for the first time since mid-January but the funds were prepared to defend that area and buy. They are likely content with what they have liquidated and we could see a bounce into the long weekend.
July and December 22 corn traded below their 50-day moving averages this week for the first time since mid-January but the funds were prepared to defend that area and buy. They are likely content with what they have liquidated and we could see a bounce into the long weekend.