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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Jul 10, 2026
USDA report day was slightly friendly to the grain markets.
Corn:
25/26 corn carryout was pegged at 2.020 billion bushels vs an average guess of 2.073 billion.  The main changes to this year’s balance sheet had feed and residual usage up 150 million bushels while they decreased ethanol by 25 million bushels.  Corn Yield for next year was estimated at 183 bushel per acre, which was about as expected. 
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.