8/11/2021

Overnight saw soybeans stronger with double digit gains supporting the corn sector.  We did see some profit taking with the 8:30am open being sold but corn had recovered by mid-day and remained mostly stagnant through the rest of the session.  New crop soybeans finished in the green for the day but were well off of their highs.  Export business for new crop is starting to pick up and the PNW market has been fairly active over the past week.  The USDA confirmed another export sale at 8 a.m. this morning with 132,000 tonnes of soybeans to China for the 2021/22 marketing year.  The weekly ethanol report showed production was down 27,000 bpd from the previous week to 986,000 bpd.  Ethanol stocks declined 373,000 bbls to 22.28 million barrels.  End-user direct remains as the only reliable market for old crop corn.  Be careful not to hold your old crop for too long, at some point, the end-user will achieve coverage to bridge themselves into the new crop delivery period.  This likely won't happen for another 4-5 weeks but, when it does, basis will deteriorate and we will be at new crop values well before harvest; similar to what we have seen in soybeans over the past 2 weeks.  The August WASDE report will be released at 11 a.m. tomorrow.