Closing Market Comments January 24, 2022

Today’s Prices

Grain markets finished mixed today as there is very little fresh news and the market is consolidating after three days of losses.

Grain Market News

South American Precipitation Forecast

The larger oval is Brazil’s growing region which expects mostly favorable rains in almost all areas.

The smaller circle is Argentina, they are expecting significant rain over the next week.

Argentina already saw substantial rains over the weekend, but additional rains would be welcomed.

The south American outlook has improved with rain falling in Argentina over the weekend with more expected.

NWS Active Alerts

We have a frontal system pushing from the Texas and Oklahoma panhandle moving east and northeast into the southern Great Lakes region.

This map shows winter storm warnings for 6-10 inches of snow across a wide slot in the pink color.

U.S. Radar

Today’s radar shows snow from the Texas Panhandle, western Oklahoma, and southern Kanas.

Heavy rains to the south, this entire system is going to be moving to the east and northeast over the next 24-36 hours.

Grain Market News

Corn- Commodity Fund Position

Corn is still long 192 thousand contracts but that’s about half of the 380 thousand contracts from the previous two years at this time.

Soybean- Commodity Fund Position

Soybeans as of Friday the funds were long a 168 thousand contracts.

The previous two years was typically between 150-180 thousand contracts.

Wheat- Commodity Fund Position

The funds are short 65 thousand contracts.

C-B-W Combined- Commodity Fund

Combined they are long 295 thousand contracts which is about half the previous long position held the previous two years.

Current Map of Ukraine/Russia

Ukraine in the center while Russia is the area to the east.

Russia has gained control of the eastern portion and southern portions of Ukraine.

There are 4 regions of Ukraine Russia says they have annexed.

It is still very clear to us that Russia’s goal is to gain complete control of Ukraine in the east and south likely all the way to Odessa.

U.S. Cattle on Feed

Cattle on feed came in at 11.682 million head.

That is down 2.9% from a year ago.

That’s a little bit more than the trade was expecting.

March Corn Chart

Corn prices did bounce nicely today, yesterday they came down to the 40-day moving average.

The chart is still pointed downward off the highs posted last week.

Today’s rally has allowed the technical indicators to hook.

Corn has initial chart support at 6.61 with further support at 6.55.

Overhead resistance is 6.85-6.88.

March Soybean Chart

Soybeans bounced nicely today and filled the gap from yesterday morning.

They turned around and closed slightly lower at 14.89.

The short term and technical is still pointed downward.

14.65 would be the next level of chart support.

March KC Wheat Chart

Wheat prices are at a major level of support.

The intermediate trend is still pointed downward as we have been unable to breakout.

We do not want to be making any sales on wheat.

Questions or Comments