11/10/2022

A little post-WASDE hangover in the markets today as any big market moving news continues to be lacking. Corn and soybeans traded mostly sideways/slightly higher overnight before reversing. A lack of headlines is typically negative for markets and combining a slow newswire with a now bigger crop sent money away from grains. The USDA announced the sale of 209,931 tonnes of corn to Mexico for the 2022/23 marketing year. The USDA chose to not address to the slow export pace for the 2022/23 corn and left that number unchanged. Export sales were weak last week, most notably for corn. At 265k tonnes, corn sales were their lowest for the week since 2012. Soybeans posting 795k tonnes of net sales was average for this week. To date, current export sales pace is 346 million bushels short of meeting the USDA target (a 24 million bushel increase from last week). Soybean sales pace has also slowed down and is now 76 million bushels short versus 64 million bushels a week ago.

Key reversal lower on the January soybean chart today. After a sharp rally to begin November, we have corrected lower to an area where there is some moving average convergence in the 1412-1420 area and trendline support around the 1400 level. We will be watching this area closely to see how the market wants to approach it. Hopefully this recent pullback on the futures will stimulate some much-needed fresh export demand for corn.