8/10/2022

Higher overnight trade turned into sharply higher trade early in the day session.  The 25+ cents higher in soybeans benefited corn, which traded 7-11 cents higher at one point.  Sentiment continues to build that Friday's report will provide bullish support to the market with assumptions of lower yields for the 2022 corn and soybean crops.  In contrast, trade is also expecting increases to the 2021/22 ending stocks for corn and soybeans.  Soybeans surrendered all their gains on the day with the front months flipping red to give the board a mixed finish.  Corn futures were less relenting, digging their heels in to hold 3-4 cent gains on the day.  Cash corn basis has taken a beating into the mid-week point with some August bids no longer present, some already rolled to December, and other bids off anywhere from 10-45 cents this week.  Ethanol and other end users are claiming good coverage into the new crop delivery period and are beginning to turn away corn.  For the week, ethanol production was off 21,000 barrels/day to 1.022 million bpd, stocks were down 100,000 barrels to 23.3 mln bbls.  That was a 6-week low for stocks and production was below the 1.064 million bpd level that is needed to reach the USDA target of corn use for ethanol.