6/1/2022

Corn has gone into major reversal mode, with July corn breaking hard below its 50-day moving average over the past two trading days.  Our next major support levels are the 100-day moving average, which sits below at 712'6, and the major lows from the second half of March in the 695 area.  After edging out the record July contract high one month ago, corn has trended lower for 5 consecutive weeks.  We have likely seen the July corn high for this year.  Soybeans performed a hard bearish reversal yesterday.  Most significant would be the November contract which set a contract high in the early hours yesterday at 1560'4 and finished around 50 cents off that mark.  Soybeans were able to hold in the green through midday but were trading 15-20 cents off the intraday highs, and finished modestly higher on the day.  The price action in corn was mirrored, with trade ending the day around 10 cents off of the lows.  The USDA confirmed the sale of 132,000 tonnes of beans to China, split 50/50 between the 2021/22 and 2022/23 marketing year.  Yesterday's planting progress update was a dark cloud over anyone bullish corn and soybeans.  This week's report showed corn and soybean planting within 1% of the 5-year average and there was likely much more planted in the previous weeks that was not reflected in the report.