4/22/2022
Apr 22, 2022
It appeared that we would finish our week on a strong tone with corn trading 9 higher and soybeans 15 higher towards the end of the overnight session. During the morning break, we received news that Indonesia would halt all palm oil exports which sent soy oil to trade new all-time highs. The USDA also made some sale announcements this morning: 1,347,000 tonnes of corn to China (735k mt in 2021/22, 612k mt in 2022/23), 281,000 tonnes of corn to Mexico (90.2k mt in 2021/22, 190.8k mt in 2022/23) and 144,000 tonnes of soybeans to Mexico (48k mt in 2021/22, 96k mt in 2022/23). That’s roughly 64 million total bushels of corn and 5.3 million bushels of soybeans. Trade had a different idea on what looked to be a well-supported day and immediately sold off on the 8:30am open, citing a window of weather next week that would encourage field work across a wide area of the U.S. and big precipitation possible in the Brazil forecast. Along with being well overdue for a correction, options for May contracts expired today which likely helped influence today's move. We are still well above major price support levels so if trade continues to ease back next week, it does not necessarily mean a change in trend. July corn trading down to the 740-750 range would be healthy. Soybeans looked poised to challenge current contract highs but have shied away quickly.
A large reversal in soybeans to end our week.
A large reversal in soybeans to end our week.