8/28/2023

Corn and soybeans gap higher at the Sunday night open and hold through Monday to complete gains of 5-8 cents in corn and 11-18 cents in soybeans.  That trade was fueled simply by weather forecasts.  Wheat was the lone sore spot in grains, with losses of 4-16 cents across different classes.  The USDA made two sale announcements this morning, confirming 123,000 tonnes of corn for delivery to Mexico and 296,000 tonnes of soybeans for delivery to unknown, both for the 2023/24 marketing year.  Weekly export inspections came in above expectations for corn with 597k tonnes shipped.  Soybean inspections were midrange at 322k tonnes.  ProFarmer's final yields for their crop tour were released late Friday with 172.0 bu/ac for corn and 49.7 bu/ac for soybeans.  This would work out to 2.185 bln bu corn carryout for the 2023/24 marketing year but would create some very tight stocks for soybeans.  This rally has created some optimism going into harvest but with record production in Brazil, up-side potential is limited.  Corn has been reluctant to follow soybeans over the past 3 weeks.  While Nov soybean futures have rallied 80 cents in that timeframe, Dec corn remains virtually unchanged.