12/20/2022

Corn and soybeans spent Tuesday reclaiming Monday's losses. Soybeans traded steady around 5 higher and held its gains going into the coffee break where a flood of buying came in at the 8:30 open. Corn was a follower. There were no official reports or sale announcements, so a very quiet day that really had no big stories, just light volume trading technical signs to a firmly higher finish. Circling back to yesterday's better-than-expected weekly export inspections report, corn shipments to date fall short of the pace needed to hit the USDA target by 186 million bushels versus 171 million bushels the previous week. Soybean inspection pace continues to slowly close the deficit to the USDA target, now short by 33 million bushels.

Corn and soybeans continue to coil/tighten within range. The tighter this pattern becomes, the bigger the breakout will be. We hit the top side of our wedge today in soybeans and trade will likely look at profit taking off of fresh length tomorrow.