Grain > Commentary > 7-29-2022

7/29/2022

Jul 29, 2022

7/29/2022
Weather continues to drive the bus and Sunday nights update will decide if the rally continues next week.  We did have a sale of 132,000 metric tons of beans to unknown today, which also fueled the market this morning.  Beans finished well off their highs for the day, likely on nervousness over the weekend.  For the week corn futures were up .52 and beans futures were up 1.53.  Thats a lot of weather premium, which means we have a lot of risk Sunday night.  Buckle in for the ride.  Basis locally feels toppy in corn and after watching bean basis break the last couple weeks it makes me nervous.  If you have any old crop corn left be careful because once the local ethanol plants get covered it's game over.  The $1 premium in old crop corn compared to new crop will disappear and it can happen in a hurry.  If you don't want to price the grain because the futures are moving higher then please consider a basis contract, which gives you until the end of August to get it priced.  The next target levels to take a look at are Dec corn at 6.53 futures and Nov beans at 15.22 futures.   Have a good Weekend!!

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