Jul 08, 2022

Corn and soybeans continue higher on a corrective bounce back, still recovering from severely oversold conditions. Trading algorithms love trading headlines and the weather outlooks have given them something to trade. These are the types of short rallies/bounces that we need to look at selling into in a weather market. Proceed with caution on the amount of trust you put in these extended weather models and forecasters that use "hot-button" terminology like "flash drought" or "heat dome." Is there some dryness and portions of the grain belt that could use a drink and do we still need rain to make this crop? Yes, we agree with that but what isn't friendly is Brazil's huge corn crop and how things have changed in demand for U.S. grain. Having a huge price break on the board and seeing no one come in to buy is a good sign that demand has dried up. Weekly export sales were extremely weak with net cancellations of 66.6k tonnes (2.6 mln bu.) of old crop corn and 160k tonnes (5.9 mln bu) of old crop soybeans. New crop sales have been lagging, running around 50% of last year's levels at this time. Given current conditions, we see a $7.50 cash price as a place to look at selling out of old crop corn and anything $15.00+ cash on old crop beans.

December Weekly Continuous. Impressive recovery in corn from the beginning of the week. The question now: Is this a dead cat bounce or something sustainable?

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Nov 27, 2023
Corn and soybeans begin the week down as lower continues to be the path of least resistance. Grains as a whole were largely weaker with wheat double-digits lower and corn finishing with 5-7 cent losses and new 2 1/2...
Nov 22, 2023
Once again, soybeans were the price leader but trade was in heavy risk-off mode in soy.  Corn and soybeans bounced around between 1-3 cents lower overnight before selling took over after the morning break.  Rains...
Nov 21, 2023
January soybeans have now traded a sixty-cent range over the past two days which includes their lowest quote since November 3 and also trading within a dime of the 3-month highs set just last week.  Today's session...