8/11/2022

December corn closed higher for the seventh consecutive day and soybeans jump double digits one day ahead of the USDA's August WASDE report.  Trade has a bullish sentiment anticipating yield cuts to the 2022 crops.  Along with the stocks and acres reports released at the end of June, the USDA announced they would resurvey soybean acres in the Dakotas and Minnesota specifically for this report.  Will they find more or less? Trade is betting on less, which has help lift November beans near a $1.60/bu off of their 8-month lows.  This is not the time of year we typically see a big futures rally so if you are looking to do some catch-up marketing, targets should remain relatively within an arm's reach of our current price levels.  This is one of the more important reports we get from the USDA and volatility is sure to be high tomorrow.  This is the perfect situation for working sell orders to catch potential price spikes.  Last year's August report was very bullish and the market sold it off afterwards.  Whether you want to do HTA's or new crop delivery, look to target the areas around 650'0 on December corn and 1470'0 on November soybeans.  We've seen a fair amount of export sale activity and announcements recently with another coming this morning of 103,400 tonnes of soybean cake for delivery to Mexico in the 2022/23 marketing year.

December corn finally closed above the 200-day moving average after failing in the previous four attempts. Good start for those looking for higher trade.