8/22/2022

Corn and soybeans struggled to stray far from unchanged during overnight trade but soybeans had firmed higher by sunrise. The weekend saw some good rains across most of the grain belt that will definitely benefit a finishing soy crop. Despite those good conditions, with the 8:30 open came heavy buying in soybeans and lifted corn with it. Money was buying the rumor of China new crop business for U.S. soybeans for the first half of 2023. One of the most talked about crop tours kicked off today with the ProFarmer tour. It was expected that they would find some corn pollination issues in South Dakota and Nebraska and some of that was verified today. The tour will continue through most of the week. It might be enough to improve export bids for corn during the new crop period. New crop corn export sales still run at about half of what they were one year ago. Brazil has a mountain of corn to move and Ukraine continues to load vessels, this makes the U.S. balance sheet much less important on a global scale. Export inspections last week totaled 740k tonnes of corn and 686k tonnes of soybeans which were both within their trading range expectations.

November soybeans moved solidly back above 1400’0 today and have formed an almost textbook bull pennant on the chart as we near harvest. Price action continues to consolidate between the July high (1489’0) and August low (1356’0).