Market Snapshot | January 26, 2022

( )

Corn futures are narrowly mixed at midmorning.

  • Corn futures fell under corrective pressure following yesterday’s climb to seven-month highs, with spillover from slumping wheat adding pressure.
  • Rainfall expected into early February should improve crop conditions in South America, but extended dryness has already caused irreparable damage to yields in some areas. Paraguay and far southern Brazil will receive “significant rain and relief from dryness” into Friday, World Weather said today.
  • With another round of rain expected Feb. 3-5, “crops that have not been too badly harmed by hot and dry weather should see an increase in yield potentials,” the forecaster said. “A full recovery of yields is not possible, but crops will be left in much better conditions in two weeks than they are today.”
  • U.S. ethanol production averaged 1.035 million barrels per day (bpd) the week ended Jan. 21, down 18,000 bpd from the previous week but up 10.9% from the same week last year.
  • Ethanol stocks rose 884,000 barrels to 24.476 million barrels, the highest since May 2021, and Midwest supplies hit a record 10.107 million barrels, 28% above year-ago.
  • South Korea purchased around 262,000 MT of optional origin corn in two separate tenders.
  • March corn fell as low as $6.15 today after reaching a seven-month intraday high at $6.31 yesterday. The market may be reaching a technical exhaustion point and could consolidate or push even lower in coming days. Initial support is seen at the 10- and 20-day moving averages around $6.08 and $6.04 1/4, respectively.

Soy complex futures are broadly higher, led by gains of over 80 points in soyoil and 15 to 16 cents in soybeans; soymeal is up around $4 in the nearby March contract.

Wheat futures are sharply lower, led by declines of over 25 cents in nearby SRW contracts and nearly 30 cents in spring wheat.

  • Wheat futures fell under profit-taking pressure after rallying to four-week highs yesterday.
  • An “impressive snow event” in the west-central Plains yesterday brought accumulations of 10 to 27 inches in a relatively narrow band extending from east-central Colorado into west-central Kansas, World Weather Inc. reported.
  • The snow, when melted, “will lead to a small region of improved topsoil moisture for a portion of hard red winter wheat country,” World Weather said, though area impacted by the greatest precipitation “was extremely small” relative to the entire HRW production belt.
  • March SRW wheat fell as low as $7.87 after jumping 38 cents the past two days. March HRW wheat fell as low as $8.07 1/2 after rising 16 1/2 cents yesterday to $8.34 1/2, the highest close since Dec. 28.

Cattle futures are higher at midmorning, led by nearby live cattle contracts.

Lean hog futures are lower after the recent string of contract highs.

 

Latest News

H&P Report negative compared to pre-report expectations
H&P Report negative compared to pre-report expectations

Nearly every category topped the average pre-report estimates.

After the Bell | March 28, 2024
After the Bell | March 28, 2024

After the Bell | March 28, 2024

Pro Farmer's Daily Advice Monitor
Pro Farmer's Daily Advice Monitor

Pro Farmer editors provide daily updates on advice, including if now is a good time to catch up on cash sales.

PF Report Reaction: Bullish USDA data for corn
PF Report Reaction: Bullish USDA data for corn

Corn planting intentions and March 1 stocks came in lower than expected.

Report Snapshot: USDA shows lighter-than-expected corn acres and stocks
Report Snapshot: USDA shows lighter-than-expected corn acres and stocks

USDA reported corn acres of 90.036 million acres for 2024 and March 1 stocks of 8.347 billion bu., both well below trade estimates. Soybean acres were slightly lower than expectations, while stocks were higher.