Closing Market Comments December 15, 2022

Today’s Prices

Grain markets finished mixed for the 4th day in a row with no clear direction in the grain markets.

Grain Market News

Corn: Weekly Export Sales

Corn had a good number at 959 thousand tons, that was above expectations and a little bit above the level needed for USDA.  

Soybean: Weekly Export Sales

The soybean export number was huge at 2.943, that’s the second largest sales number for any week over the last 2 years plus.

Export sales were good for soybeans and considered supportive today but had negative news from the crush.

Wheat: Weekly Export Sales

Wheat exports were also very good at 469 thousand tons, well above the level needed and above expectations.

NOPA Soybean Crush

Soybean crush came in at 179.2 million bushels which was down just fractionally from last year, but the trade was expecting it to be above last year and possibly an all-time record.

Soybean oil stocks came in at 1.63 billion pounds, slightly larger than the trade was expecting.

Grain Market News

South American Precipitation Forecast

Week 1 Argentina has very little rain and that extends into Paraguay, Uruguay, and southern Brazil.

Most of Brazil is experiencing very good weather and crops are in good shape.

Week 2 shows Argentina dryer than desired as well as Paraguay, Uruguay, and southern Brazil.

Brazil is still in good shape.

Temperature Anomaly

Anything in red is above normal and anything blue is below normal.

Brazil looks to have mostly below normal precipitation but in the heart of their growing season that’s probably good news.

Argentina will continue to have above normal temperature that will accompany the drought conditions.

7-Day Observed Precipitation

An inch plus is very coming in the northern half of the Mississippi Valley, with 2 inches in northeast Iowa an northwest Illinois, and in the southern portions of the Mississippi Valley we are seeing 2-4 inches.

This would be considered a supportive item for the grain markets.  

These rains are falling in many dry areas that were experiencing drought.

U.S Drought Monitor

The rain in the northern plains is hitting a drought area.

Also, the central U.S. is getting some very good rains which will offset some drought conditions.

The eastern belt and Ohio valley are getting some relief as well.

Unfortunately, the southwestern plains did not get good rain and severe drought will continue there.

December Corn Chart

Corn prices are in an uptrend off the lows posted 1.5 weeks ago at $6.35.

The chart is providing mixed news.

Until we see how the market reacts around the overhead resistance there is no clear direction in the corn market.

November Soybean Chart

Soybean posted a high at 14.97 last week but have been unable to take out those highs.

Our intermediate trend is still up, and we are trading above all our major moving averages.

Bottomline is we are somewhat stuck in a consolidation pattern over the last week.

December KC Wheat Chart

Wheat prices like corn are trying to show somewhat of an uptrend in the short term.

The longer term is pointed downward, so we have mixed news in wheat.

We like the fact that the lows at 8.21 were nearly 2 weeks ago and currently trading 40 cents above those lows.

The technical indicators are continuing to try to move higher.

Questions or Comments