5/9/2022
May 09, 2022
"Risk off" was the theme across multiple market spaces today. The DOW and NASDAQ Indices were down hard in the 400–500-point ranges and virtually all commodities were deep in the red. Soybeans managed some slightly higher trade at the 7 p.m. open but most corn months were not able to even trade at unchanged. Wheat was sharply higher overnight and early in the day session but reversed hard before the midday point. Most finished lower and 30-40 cents off of the daily highs. Soybean meal, soy oil, oats, and crude oil all saw big losses on the day. This pullback in grains is best described as seasonal and we're likely entering a pattern of selling into rallies as the best move. Weekly export inspections totaled 1.393 million tonnes of corn and 503k tonnes of soybeans last week. Current shipment pace for corn exceeds the pace needed to meet the USDA target by 37 million bushels, the shipment pace for soybeans falls short by 27 million bushels. The USDA will release its May WASDE report this Thursday at 11 a.m. This will be the first report that includes supply and demand figures for this year's U.S. corn and soybean crops. Will we see updated acres? Where will the USDA set our initial yield? Those are two of the major questions that will get answered on Thursday.
