Grain > Commentary > 9/26/2022

9/26/2022

Sep 26, 2022

Trade was a rinse and repeat from Friday. Once again, the dollar index extended its rally in sharply higher trade, sending commodities and equities into defense mode as a result. Adding to the down pressure in grains was a very lack-luster weekly export inspections report. Corn and soybeans both missed their targets to the low side with 459k tonnes of corn and 258k tonnes of soybeans shipped last week. We are still in the first month of the new marketing year but the strength of the dollar is definitely having a negative effect on export demand. To include a positive twist in this wildly bearish trade, crude oil has nearly given up all gains made in 2022, trading about $1/bbl above the opening price on January 3rd. We still have the big dark cloud over the market of possible global economic recession and it seems to becoming more of a "when" not "if" type of subject. U.S. grains are still at a premium to South American corn and soybeans on a FOB basis, the current difference is roughly $1/bushel for both. So far, the early harvest soybean yields around the country have been "better than expected." We expect there to be a significant amount of soybean harvest activity in our immediate area towards the end of the week. Scale hours may vary by location so please be in touch with your specific Glacial Plains location for updated hours.

The December corn chart is giving the look of wanting to roll-over to the downside.
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