5/6/2021

May 06, 2021


5/6/2021
Another day of trade ends and its one very similar to what we've seen over the course of the previous 5 weeks.  Today sees another fresh set of contract highs and the spread between cash-new crop corn values tightened by another 12 cents on the board.  There are technical indicators all over signaling we are extremely overbought and need a steep correction but it is not deterring the money from going long.  These 10-25 cent moves higher almost seem effortless at this point but stay diligent to the fact that the 10-25 cent moves lower will be similarly effortless when the market breaks lower.  Next Wednesday, the USDA will put out the monthly WASDE report, giving us fresh fundamentals to trade, but after a 5-week rally, can anything in the report continue the push higher?  Some sideways, range trade would be extremely healthy right now and provide the market a much-needed breather.  New crop 22 and 23 values are a discount but history has shown that there is a real possibility of those current values being extremely coveted at the delivery period.  Already hearing some in our area are 100% planted for both corn and beans and expect a large majority of operations in the territory will be completed with planting by the end of the weekend.

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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. 
Jan 12, 2026
Well, the USDA report had a bit of a surprise today and not in a good way.  Not only did they increase the 2025 corn yield, from 186.0 to 186.5, they also increased Harvest Acres from 90 million to 91.3 million.  That raised the total corn production to 17.021 billion, up an additional 269 million bushels from their previous estimate.  U.S. Ending Stocks are now estimated at 2.227 bbu, vs. 2.209 in Dec.  Report trade guesses were at 1.97 bbu.
Nov 14, 2025
It was USDA report day today and overall, it was bearish for both corn and beans.  Corn Yield was only reduced by .7 bpa down to 186 bpa.  The market was expecting closer to 184 bpa.  Corn production is estimated at 16.752 billion vs 16.814 billion in September.  They raised exports 100 million, which is debatable, but possible.  Ending stocks on corn were estimated at 2.154 billion bushels, which is up 44 million from September and about 29 million more than the market expected.