2/15/2023

After a quick visit to the top side of our long-term trading ranges to start the week, corn and soybeans continued to reverse lower on Wednesday. The general up and down, day-to-day price action continues across the grains. Corn has been inside a relatively small range for the past 6 months and the longer that carries on, the larger the eventual break-out. To start the day, the USDA confirmed the sale of 213,370 tonnes of corn for delivery to Mexico during the 2022/23 marketing year. Weekly ethanol figures showed production increasing from the prior week by 14,000 barrels/day to 1.014 million bpd. Continuing to lag behind the pace needed to reach the USDA target for corn used for ethanol. Ethanol stocks also increased by 992,000 barrels to a total of 25.339 million bbls. NOPA January crush numbers were also released this morning and showed a crush of 170 million bushels vs 181.7 mln estimated. Soy oil stocks came in below estimates at 1.829 billion pounds. Yield reports out of Brazil are beginning to confirm what is expected to be an absolute monster crop.

Corn triple-top currently in hand.