Weekly Market Wrap-Up
Grain Market Commentary
Friday, September 10, 2021
by Jennifer Klindt, Merchant, The Andersons
Tuesday’s trade started the week lower after a long holiday weekend and talk of the USDA potentially increasing corn acreage, along with corn and soybean yields, in Friday’s upcoming WASDE release. Corn and soybean export inspections were reported as exceptionally low for last week as a result of the gulf shut down due to Hurricane Ida. December corn futures closed the day 13.25 cents lower at $5.1075. November soybean futures closed the day 15 cents lower at $12.77. Tuesday’s Crop Progress marked a 1% decline in corn condition ratings to 59% good/excellent and a 1% improvement in soybean condition ratings to 57% good/excellent.
Wednesday’s session showed early upside, but choppy trade closed off the midday highs as the FSA leaked acreage data that was not to be released until Friday. The data was captured by agencies that indicated the USDA may add up to one million acres of corn and slightly lower soybean acreage. The USDA confirmed the sale of 106,000 tonnes of soybeans for delivery to China in 2021/22. December corn futures closed the day at 5.1025, a loss of 0.5 cents. November soybean futures closed the day at 12.7950, a gain of 2.5 cents.
Trade on Thursday was marked by early downside due to continued pressure from increased corn acreage estimates. Weekly ethanol production data showed an increase in production and decrease in stocks week over week. The USDA confirmed the sale of 132,000 tonnes of soybeans for delivery to China in 2021/22. December corn futures closed the day 0.25 cents lower at 5.10. November soybean futures closed the day 9 cents lower at 12.7050.
Friday’s session displayed a rally in corn and soybeans to finish off the week. Export sales data released Friday morning came in line with trade expectations, with old crop soybean sales exceeding expectations. The USDA confirmed the sale of 132,000 tonnes of soybeans for delivery to China in 2021/22. In the long-awaited WASDE release, the USDA raised corn yield estimates by 1.7 bushels per acre (bpa) to 176.3 bpa., increasing total production to 15 billion bushels. Corn planted acres increased from 92.7 million to 93.3 million, along with an increase in harvested acres from 84.5 million to 85.1 million. The USDA increased soybean yield estimates by 0.6 bpa to 50.6 bpa, bringing production to 4.37 billion bushels. Total soybean planted acres decreased from 87.6 million to 87.2 million, along with a decrease in harvested acres from 86.7 million to 86.4 million. 2021/22 ending stocks for corn increased from 1.242 billion bushels to 1.408 billion bushels. Ending stocks also increased for soybeans from 155 million bushels to 185 million bushels. December corn futures closed the day at 5.1750, a gain of 7.5 cents. November soybean futures closed the day at 12.8650, a gain of 16 cents.
December corn futures opened the week at $5.24 and closed the week at $5.1750, a loss of 6.5 cents.
November soybean futures opened the week at $12.9175 and closed the week at $12.8650, a loss of 5.25 cents.
December wheat futures opened the week at $7.24 and closed the week at $6.8850, a loss of 35.5 cents.