7/24/2023

Hot temps and dry forecasts combined with Russia conducting strikes on Ukrainian export facilities send corn, soybeans, and wheat all sharply higher to start our week. Wheat featured some locked-limit higher trade while corn and soybean enjoyed gains of over 30 cents on the day. The USDA announced a sale this morning of 121,000 tonnes of soybeans for delivery to China during the 2023/2024 marketing year. Analysts are not expecting much change in this week's crop conditions report and expect soybeans to be unchanged and the good/excellent rating in corn up 1 point. Weekly export inspections were within expectations for corn and soybeans with 310k tonnes of corn and 283k tonnes of soybeans shipped last week. The 310k tonnes of corn was the 2nd lowest total of the marketing year. Following the seasonal pattersn, soybean inspections have potential to see a quick increase as harvest in the south gears up.

Corn keeps chugging higher on a nice sustained rally beginning back mid-June. Today we came about half of a penny short of hitting an important retracement level and touching the 200-day moving average near 573. Trade through and hold above the 200-day and we can likely revisit the 600’0 mark, if not, we will trade back near the 530 area.