6/5/2024

Jun 05, 2024


Demand is routine and any threat to this year's crops currently perceived as minimal keeps us in a grind lower.  We did see some 5 higher corn and 10 higher soybeans trade for a brief while after the 8:30 re-open.  Corn is back down near 3-month lows meaning our "late planting" rally is officially priced out of the market but doesn't mean we can't make a run at something better than today's prices in the near future.  The farmer has been severely disengaged since mid-May and basis has reacted by firming.  We have some potential head and shoulders patterns on the charts we can use if trade can find somewhere close to bounce from.  We've basically erased May's trade from the charts in the first week of June.  New sell targets (these have been revised lower):  Fill cash corn at 460 July futures to close out on old crop sales (previously 477'0), new crop corn at $4.30 or Dec HTA's at 480'0 futures (previously 502'0). Fill cash soybeans at 1200 futures to close out old crop, new crop soybeans at $11.00 cash or 1188 futures.

Potential head and shoulders pattern we are looking for to give us some to sell cash grain against. Gaps are likely to remain unfilled on the charts.

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Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off. 
Aug 12, 2025
The USDA report today didn't treat the corn market very well.  Both corn acres and yield were higher the result has corn carryout over 2.1 billion bushels.  Corn yield was pegged at 188.8 bpa vs an estimate of 184.29 bpa.  How high is 188.8?  Well…the previous record was 179.3.  Planted corn acres were put at 97.3 million.  Total corn production is estimated at 16.742 billion bushels, which is 763 million more than the report estimates.
May 12, 2025
News broke Sunday that the USA and China have agreed to ease tensions and lower tariffs.  The US is lowering tariffs on Chinese goods from 145% to 30%.  China is lowering their import tariffs from 125% to 10%.  Talks will resume in the coming weeks.  This news had stocks, grains and oil higher overnight. Then of course we had a USDA grain report come out at 11:00 this morning.  That was also a bit friendly.