8/25/2022

Price action was similar to Wednesday with corn and soybeans making another push in the green but no fresh August highs today. December corn traded a few cents lower most of the day and appeared weak going into the close to finish 7 lower. After trading a fresh high for August yesterday, November soybeans have largely reversed and sold off all the way into today's finish. The board had the look of wanting to punish anyone who took a long position based on the big crop tour. We mentioned earlier this week that this is not the time of year we see sustainable rallies. After spending sometime featuring sharply higher trade during the past few days, fresh length already looks like it wants out. Thursday usually brings us our weekly export sales report but the USDA had switched to some type of new format of reporting and published three different numbers. Despite the reporting errors, the consensus was an excellent week of soybean sales and an "ok" week of corn sales. The ProFarmer crop tour data found slightly above average crops in Illinois and well below average crops in Western Iowa. The remainder of Iowa is being surveyed today along with Minnesota. Full results for the tour will be released tomorrow.

Bull pennant or bull trap? After breaking out of the topside of our wedge earlier this week, November soybeans have fallen back under that topside line. Moving averages continue to converge/tighten along with down side and up side gaps still on the chart to target builds pressure for a major move in the near future.