Closing Market Comments 5-12-2022

Today’s Prices

Grain prices finished higher today following the UDSA May crop report

Grain Market News

U.S. Ending Stocks

World Ending Stocks

South American 2022 Production

Corn Supply and Use

Soybeans Supply and Use

Wheat Supply and Use

High Temperatures

Yesterdays high in the upper 80s even mid 90s across almost the entire U.S. corn and bean belt. The exception would be areas of the far northern plains.

The heat is not a problem at this time given the fact we are trying to warm up soil temperatures for germination and emergence.

3-Day Observed Precipitation

We have seen a lot of precipitation in the northwestern belt and northern plains in the last 3 days.

Southern Minnesota got hammered with rain over the last 24 hours which is going to knock most of Minnesota out of planting progress for a few days.

7-Day Precipitation Forecast

There is more rain in the forecast for the northern plains over the next 7 days. That will keep planting very slow and then we do note that they will start to see more rain in the eastern belt.

Overall, we think that the weather is pretty good for the southern 2/3 but big problem remains in the northwest.

July Corn Chart

Corn prices bouncing again for the third day in a row which was enough to turn technical indicators higher.

This market looks from a chart and technical perspective like it may want to retest the highs from a few weeks ago at 8.24.

July Soybean Chart

Soybean is turning a corner for the moment in the nearby July chart, and it has turned the technical indicators up as well.

The next objective that we see is the 16.50-16.60 range, that’s the middle of our range and the moving averages come into play.

Another 30-40 cents shouldn’t be ruled out based on charts and technical formations.

July KC Wheat Chart

Wheat prices exploded on tightening global stocks and the fact that USDA did not lower India’s production and that is likely going to drag world stocks even lower in future reports.

Not only did we explode to the upside we took out the highs posted in March at 12.59 and posted a new contract high at 12.70.

Questions or Comments

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