BASIC & RECENT MARKET INFO

Highlights The city of Chengdu, China has extended its COVID lockdown indefinitely. The city of 21 million people has been on lockdown since September 1. That is negative for crude oil and, therefore, corn and beans because cheaper crude oil means cheaper gasoline and diesel which means cheaper ethanol and biodiesel. Avian influenza (HPAI) has been confirmed in Ohio. Three million laying hens will be euthanized. We knew we would get bird flu somewhere this winter, but we s

Highlights USDA announced yesterday morning the sale of 396,000 mts of soybeans to unknown. Taiwan shot down a Chinese drone for the first time Wednesday. It was a “civilian” drone in Taiwan’s airspace. Escalation of tension between Taiwan and China is negative for beans and, to a lesser extent, corn, because the US militarily supports Taiwan. Anything that creates friction between those two countries increases the chances of soybean trade between the US and China. Note that

Highlights Black Sea grain market analyst, Andrey Sizov, is beginning to think the seasonal low in wheat prices is behind us. The Tech Guy thinks the $7.52 August 2nd low in September CBOT wheat will hold. Roger says better than a 50% chance it will be broken purely because corn farmers and corn elevators are desperate to get rid of wheat in their bins. The problem this time of year, as always, every corn and/or bean farmer and every grain handler in the Corn Belt are all tr

Highlights Yesterday morning, USDA announced the sale of 196,000 mts of new crop soybeans to China. Yesterday morning the government reported the Consumer Price Index (CPI, the measure of inflation at the retail level) was 8.5%, down from June’s 9.1%. The market expected 8.7%. Crude oil recovered its losses yesterday afternoon to settle higher on the news that the Strategic Petroleum Reserve (SPR) inventory had declined 5.3 million barrels last week. Gasoline stocks were do

Highlights Two years ago today, December 2020 corn made its contract low at $3.20. It traded to $4.30 on November 30, 2020. That was the contract high. The USDA reported yesterday morning a sale of 135,000 mt of new crop soybean meal & cake to Poland. There were no deliveries assigned on August beans or oil, but 35 lots of bean meal were assigned and went to "strong hands". The oldest long positions are: Meal 18 July 2022 Oil 8 July 2022 Beans 24 February 2022

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Highlights At 10 AM Mountain Time today, the USDA will release its Actual Planted Acres, Quarterly Grain Stocks and Wheat Production Reports. Corn has sold off and beans have rallied going into today’s reports. The analysts expect about a half million more corn acres and a half million fewer beans than the March Intentions. However, based upon market action, the market expects about 2 to 2.5 million more corn acres and 1.5 to 2 million fewer bean acres. It will be very diffi

Highlights The Federal Reserve increased interest rates 75 basis points (0.75%) yesterday. It was 28 years ago since the Fed increased the interest rate that much. The 30 year home mortgage fixed rate is now 6.28%. The stock market rallied on the news as the market feels the Fed has finally gotten serious about controlling inflation. Fed Chairman Powell said more rate increases are coming in the next few months. He predicted the inflation rate will be back down to 2% in 202

Highlights Tomorrow at 10 AM Mountain Time the USDA will issue its monthly S&D with revised world production numbers. Not much is expected other than soybean exports should be increased 25 to 30 million bushels. The USDA will wait until the Quarterly Stocks and Actual Planted Acres Reports on 30 June before making big changes on the July S&D. India may get the UN nod to export 600,00 mt of wheat. Supposedly a big relief to traders, shippers, importers, and logistics partners

Highlights USDA announced yesterday morning the sales of: 66,000 mts of old crop beans to China 66,000 mts of new crop beans to China The Biden administration is likely to raise 2021 US ethanol blending mandates to above the figure proposed in December. That sent US renewable fuel credit (RIN) prices up 5% yesterday. Yes, 2021… Only the US government can change rules after a marketing year is over. The good news for corn producers is the reoccurring rumor that the government

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Highlights CONAB will update their Brazil production estimates this morning. How much will they reduce Brazil's corn production? April...

Highlights After Federal Reserve Chairman, Jerome Powell, announced the Fed was raising the interest rate a half percent (50 basis...

Highlights Because feed wheat is so expensive, the US Ag Attaché in Vietnam expects corn imports to increase 600,000 mt this year. ABIOVE...

Highlights The Federal Reserve governors issued some rather harsh words Wednesday afternoon about inflation needs to be dealt with...

John Deere will sell machine-servicing software to farmers and mechanic shops beginning in May. More than 10 million egg-laying hens have...

The price outlook we have remains lower wheat into August with old and new corn and beans to make new highs in the May June time frame....