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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Sep 12, 2025
USDA report day.  Corn and beans were trading higher pre-report on thoughts of a reduction to yields.  Well....we got what we were thinking but the USDA decided to throw a twist into the mix.  The 25/26 corn yield decreased slightly less than expected by 2.1 bu to 186.7 bpa, but they gave us the largest planted acreage shift on this report in at least the last 20 years (+1.4 mil acres) spurred an increase in production to 16,814 mbu.  25/26 ending stocks were slightly lowered by 7 mbu to 2,110 mbu. 
Aug 21, 2025
Today the market ran higher on rumors for positive SRE announcements coming soon.  Bean oil was up over $2.  Beans finished the day up 20 cents at 10.56 Nov futures.  There is a chance we could make a run at the 10.74 Nov highs from back in June.  If we get there, I am a seller.  Bean basis remains in the garbage, so a run higher in futures doesn't help that either.  We still don't have a trade deal, so I think any rally is short lived at this time. 
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.