6/23/2022

Another day of hard liquidation.  Corn flirted within a couple cents of limit lower and soybeans were down 30 in the first hour of overnight trade before doubling down and spending most of the day around 60 cents lower.  Spec money which was in deep buying through the spring has turned seller.  July options expire tomorrow and money might be trying to shake out the late buyers to take a portion of the bullish options positions out of the money.  Cash basis has suddenly begun to slide.  End users have been aggressive through May and June and suddenly appear to have good coverage 60-90 days out.  The USDA export wire continues to be silent this week.  With Brazil harvesting a good second crop and their grain values at a discount to the US, any export sales through the summer will be minimal unless weather dictates a need for additional supply.  With the USDA closed on Monday for a federal holiday, we will get our weekly export sales report tomorrow morning.  For those with a July corn basis contract, you have until June 29 to price those or roll them to the September. 

A solid technical bounce off of July’s 100-day moving average.