Schwieterman Grain Comments

Corn acres came in a bit higher than expected at 89.9 million, which is still well below last year.

Schwieterman Grain:   More corn acres than expected

Corn
Trends
Short Term: Down
Long Term: Down
Overnight Trade: U +5 @7:30 AM

Corn acres came in a bit higher than expected at 89.9 million, which is still well below last year. Traders, however, did not react well to the numbers and the corn finished the session sharply lower. The December contract is currently trading at the lowest level since early March despite all the concerns with lower acreage and the war in Ukraine. Recession fears and money flow are major concerns and the next major support for the December contract is at $5.95.

Wheat
Trends
Short Term: Down
Long Term: Down
Overnight Trade: Chicago: U +7 KC: U +4 @7:30 AM

As expected, the wheat numbers were not particularly interesting, so the wheat market followed the corn market lower. Yesterday’s action did some major chart damage, so now we have to consider the possibility of a move down to the $9.00 area. Demand is the key at this point and we have to build on the two consecutive weeks of good export sales.

Soybeans
Trends
Short Term: Down
Long Term: Down
Overnight Trade: U -17 @7:30 AM

Soybean acreage was much lower than expected at 88.3 million and the initial reaction to that was a move higher, but the November contract died at the 50-day moving average and the market traded about 80 off of yesterday’s high at one point overnight. The July supply and demand report will probably be very bullish, but traders do not seem concerned about that at the moment. Plan on more volatility and more big price swings.

Schwieterman
Bret Crotts
620-275-4133
888-437-9131
bret@swbell.net