10/13/2021

Corn and soybeans made an attempt to recover during overnight trade but the effects of the bearish WASDE report were just too much. I suspected yesterday's price breaks could be the spark we needed to drum up some export business and the USDA made three 8 am sales announcement this morning; 161,544 tonnes of corn to unknown for 21/22, 330,000 tonnes of soybeans to China for 21/22, and 198,000 tonnes of soybeans to unknown for 21/22. The front months for corn and soybeans both tested their closest major support levels today and managed to find some solid buying interest at those marks. Most ag commodities saw some steep numbers in the red today, including wheat and oats seeing double digit losses. Yesterday, the FSA was scheduled to release their updated acreage data for October but they have delayed this release. Crop progress highlights from yesterday: corn harvest seen at 41% complete, ahead of last year (39%) and well ahead of average (31%). Soybean harvest seen at 49% complete, behind last year (58%) but ahead of average (40%). Our markets have been hit rather hard in a short period of time so it wouldn't be a shock to see some sort of recoil action or bounce higher going into the weekend. Those types of short rallies are the ones to sell into.

Below:
Today saw good technical recoveries on the front months for corn and soybeans. Corn tested its first major support level of 507'0 and soybeans quickly tested support at 1184'0 after closing below 1240'0 at the beginning of the week.