Summary & recommendations for corn, soybeans and wheat this week.
Corn Situation after the close 17 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. On May 13, we recommended selling any remaining old crop corn at the market (about $7.85 July futures), basis contracts, long call options, DP, etc. Did NOT recommend buying puts just yet. July 2022 corn made its high April 29th at $8.24½ and settled yesterday at $8.00¾ December corn settled at $7.19 on Tuesday, 17 May 2022 Price Change Tuesday to Tuesday: up 41¾ cents 24-month high $7.66¼ made 16 May 2022, $1.28¼ above the Dec corn 2021 high 24-month low $3.68¾ made June 26, 2020 24-month range is $3.97¼ Yesterday’s closing price is: 5½ cents below the 24-month high $3.91¾ above the 24-month low USDA's 2021 crop carryout in terms of days’ use: US: 35, world: 94 USDA's 2022 crop carryout in terms of days’ use: US: 34, world: 94
Seasonal Trend is up into third week of June Fundamentals are Bullish Technical Situation is Bullish Price Above Breakeven? Yes Conclusion: Sell December HTA at $7.50 or better
The past week’s low was $7.19; the high was $7.66¼
May 18th, 2022, Bullish Consensus: