6/20/2023

Corn and soybeans gapped higher again at the Monday night open which sent December corn futures to trade within 2 cents of its high for the 2023 calendar year. August soybeans traded out to 15 higher, filling a gap left on the chart from back in April. By sunrise, the market had reeled and we were seeing lower trade in the range of 8-12 cents in the red. We ended the day slightly mixed but mostly higher down the board and it felt like trade was just flipping a coin on deciding what to do as the day progressed. The volatility was alive and well today and we should remain supported around these levels. We are at the point where forecasts cannot be traded solely and rain will need to actually materialize to see fund and spec money sell off. One thing to keep in mind on this rally; the current board prices will not help U.S. export or domestic demand and Brazil has approximately 2/3 of its safrihna crop to sell, yet. The USDA also has some sharpening to do on the 2022/23 crop balance sheet as we near the end of the crop year. This will likely include further cuts to corn demand for ethanol use and exports.

Calendar year-to-date for December corn: