8/13/2021

Yesterday's WASDE report gave the markets a shot of life with some friendly numbers after the USDA shocked the market with a 5 bu/ac cut in the 2021 corn yield compared to last month.  Corn and soybeans both finished well off their highs yesterday but follow-through buying supported the market today.  Soybeans failed to break higher on yesterday's report but corn did break out of its 4-week trading range.  Trade is unwilling to test current highs and long-term consolidation remains intact with corn and beans both finishing the week near the mid-points of their multi-month trading ranges.  A few important things to watch going forward from here are crop finishing rains, how the current US grain prices compare globally and how they may affect future export sales, and the FSA's initial acre report implying that it is likely the USDA still has corn and soybean acres understated.  September corn futures finished 13 higher for the week but cash only posted a 3-cent gain from last Friday with basis beginning to slip with end-users gaining coverage ahead of harvest.  Delivered new crop corn performed well this week, posting a 17-cent gain.  Weekly close for cash beans is 19 cents higher and new crop beans picked up a healthy 34 cents on the week.  Everyone have a wonderful weekend!