7/22/2021

Corn and soybeans both down hard from the start of the overnight session last night and throughout the day but did manage to come back firmly off their lows, cutting losses in half.  Weather models plugging some rain into areas that need it 11-15 days out along with a poor week of export sales were cited as the reasons for the sell-off.  Sales for old crop netted 62k tonnes in soybeans and 88k tonnes of cancellations in corn with China cancelling 160k tonnes of old crop corn.  New crop sales were underwhelming with only 48k tonnes of corn and 176k tonnes of soybeans sold.  Wheat no old crop sales last week but did net 473k tonnes of new crop sold.  If cancellations for old crop corn becomes common, it will be interesting to see how this could affect our carry out number going into harvest.  An increase in ending stocks ahead of the biggest time of year for corn movement would be a tough hurdle for anyone bullish to overcome and, essentially, cap this corn market.  The front-month spring wheat futures traded 26 lower early and rallied back to finish 6 higher on the day.