8/25/2021

After a weak overnight session, corn and soybeans turned higher after the morning break.  Managed money has, once again, started adding back to their net long position after liquidating their length down to a relatively small total two weeks ago.  Export business seemed to be a little quieter today and the USDA did not announce any flash sales this morning.  US soybeans are currently the cheapest globally so expect to see soybean export business perk up.  The 2022 crop futures were the big gainers today and strength in today's trade is credited to the forecasted return of a La Nina weather pattern over the next six months.  This expected to challenge the next round of corn and soybean crops in South America where there are already dry.  River levels in Argentina are currently low and this creates the real possibility that the country may not be able to barge next year's crop down river for export.  Ethanol numbers continue to slide with output off 40,000 barrels/day, down to 933,000 bpd.  Ethanol stocks were also down 335,000 barrels to 21.22 million.