6/9/2022

Corn and soybeans lower overnight gave way to very firm buying on the front end with large gains mostly exclusive to the July corn and soybean contracts. The USDA announced the sale of 143,000 tonnes of soybeans for delivery to unknown this morning, with 142,500 tonnes to be delivered in the 2022/23 marketing year. China was the featured buyer of soybeans last week, repurchasing some previously canceled cargoes on last week's steep price break. Soybean export sales last week were 430k tonnes of old crop and 595k tonnes of new crop. Export and crush demand for soybeans remains strong and very supportive to the market. A cut in soybean ending stocks in tomorrow's report would not be surprising. Corn benefited from some spill over support in soybeans but was held back by erratic, mostly lower trade in wheat. After setting intraday highs near the mid-day point, corn looked weak going into the close and finished mixed. Old crop corn export sales were good for this time of the year with 280k tonnes old crop but the report only showed 74k tonnes of new crop corn sold. It's getting to that point of the year where a person really should be thinking about how you are going to market any old crop you have left. If you still have unpriced corn from last year, there's no reason to not have an order working for $8.00 cash. I like $17.25-17.50 orders for home run beans.

Last week saw July and December corn trade below their 50-day moving averages for the first time since early January. We also finished last week well below those levels which, on the technical side, is a bit of a bearish twist to a well-supported market. The 20-day average crossing under the 50-day creates an even more interesting scenario. It feels like money’s objective is to get us back over these averages. We were able to trade through but not hold on the July today and the December has touched the 50-day each of the past two days but made no effort to trade through.