6/15/2023
Jun 15, 2023
Some bullish technical set-ups on the charts and some missed rains were all that was needed for money to come flying into the grains today and it appears the funds dove in head-first. We ended Thursday with some monster gains just under the highs that included 52 cents higher on November beans and 25 cents higher on December corn. The hot topic in the market is how we are correlating with 2012 and 2013 but the big difference in 2023 is demand! Bull markets are fun and it is enjoyable to watch corn rally 25 cents in a day but this does not help demand down the road. This will only price the U.S. further out of global markets and put basis even harder on the defensive. It's no secret that the market this week has opened up the grain bins and moved a lot of bushels and there's just not the demand needed to absorb this big influx of cash grain on the market. Weekly export sales were mid-range for corn with 273k tonnes sold and on the upper end for soybeans with 478k tonnes sold. NOPA crush for May was a record for the month with 177.915 mbu of soybeans crushed, well above the trade guess of 175.88 mbu.