Wright TeamWeekly Summary & Recommendations 05/04/2022
Summary & recommendations for corn, soybeans and wheat this week.
The Federal Reserve just announced a half percent (50 basis points) interest rate increase, market was looking for a 50 tp 75 basis point increase.
Corn
Corn Situation after the close 3 May 2022
Even though we expected old crop futures to exceed $7, we recommended since June 29, 2021 pricing 2021 corn when nearby futures were $6.22 to eliminate risk and prepare to buy puts when high is made this spring or early summer to make the money on the way down not made on the way up. May corn traded above $6.22 on January 25, 2022.
May 2022 corn made its high April 29th at $8.24½ and settled yesterday at $8.00¾.
December corn settled at $7.35¼ on Tuesday, 3 May 2022
Price Change Tuesday to Tuesday: down 8¼ cents
24-month high $7.57 made 29 April 2022, $1.19 above the Dec corn 2021 high
24-month low $3.68¾ made June 26, 2020
24-month range is $3.88
Yesterday’s closing price is:
21¾ cents below the 24-month high
$3.66¼ above the 24-month low
USDA's 2020 crop carryout in terms of days’ use: US: 30, world: 94
USDA's 2021 crop carryout in terms of days’ use: US: 35, world: 93
Seasonal Trend is up into third week of June
Fundamentals are Bullish
Technical Situation is Bullish
Price Above Breakeven? Yes
Conclusion: Don’t sell
The past week’s low was $7.30¾; the high was $7.57
May 4th, 2022, Bullish Consensus:
Corn | Grainstats | Wright on the Market |
bullish | 50% | 66% |
neutral | 39% | 16% |
bearish | 11% | 16% |
no opinion | 0% | 2% |
Soybeans
Soybean Situation After the Close Tuesday, May 3rd, 2022:
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