Grain > Commentary > 7-7-2022

7/7/2022

Jul 07, 2022

7/7/2022
A healthy corrective bounce back in the green with corn and soybeans still in severely oversold conditions.  The September 22-May 23 corn contracts filled their respective gaps left on the chart from Tuesday's 8:30am hard open.  The gap fill was quickly sold off, session highs were set, and December corn spent the rest of the day working to get back to the 600'0 level.  Soybeans have yet to fill any of the gap area overhead.  Weekly ethanol data showed producers down 7,000 barrels/day from the previous week to 1.044 mln bpd.  Ethanol stocks grew 744k barrels to 23.49 million barrels.  Weekly export sales data is usually released on Thursdays but is delayed until Friday this week due to the July 4th holiday on Monday.  Extended weather forecasts have been favoring warm and dry weather for the second half of July providing some support to the market going forward.  With corn pollination and tasseling coming quickly, the next few weeks will be the most important in determining market direction.  Big up-side in the market is still possible and conditions in Brazil have yet to be factored in for their first crop.  Overall, demand has been sluggish as of late with export sales virtually at zero and end-users only buying what they need when they need it.

drought-monitor.png

Read More News

5/12/2025
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.
3/31/2025
Mar 31, 2025
USDA reported corn planting acres at 95.326 million acres of corn, which would be up a little more than 5% from 2024's final number and the second highest March figure of the last ten years behind only 2020's estimate of 96.99 mil acres.  US corn stocks as of March 1st were seen at 81.51 billion bushels, which was exactly what the trade had expected and was down just over 2% from March 1 of 2024.  USDA said farmers intended to plant 83.495 million acres of soybeans, which would be down about 4% from last year and was just a hair smaller than what the trade was looking for.  March 1 soybean stocks were pegged at 1.91 billion bu's, which again was nearly exactly as the trade had expected, and was up 3.5% compared to March 1, 2024.
3/11/2025
Mar 11, 2025
The monthly USDA WASDE report was today and it was about as boring as it can get.  The USDA took the month off leaving corn and beans carryouts unchanged.  Corn remains at 1.540 billion bushels and beans at 380 million bushels.  World ending stocks were slightly lowered on both corn and beans.  World corn was pegged at 288.94 million tonnes vs 290.3 million tonnes previously.  World beans were pegged at 121.4 million tonnes vs 124.3 million tonnes previously.  All of the South American crop production estimates were also left unchanged.