TFM Midday Update 4-19-2022

CORN

May corn down 11 @ 8.02
Corn inspections were 44.8 mb, with total inspections now at 1.307 bb
Funds are long almost 400,000 contracts of corn
Market may be overbought, but open interest continues to increase
The corn market could see an increase in ethanol usage and ethanol exports as margins improve
The US corn crop may be planted late in some areas due to cold & wet weather, but the second week of the forecast is mostly warm and dry which should allow farmers to get into the fields

May soybeans down 1 @ 17.14
Soybean inspections were at 35.7 mb with total inspections now at 1.689 bb
Private exporters reported sales of 123,650 mt of soybeans for delivery to unknown during the 21/22 marketing year
The trade is waiting to see if China buys US beans August forward, where we are the most competitive
China should still be watched closely due to covid lockdowns and slowing of their economy (which could impact their imports of soybeans and other commodities)

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May wheat down 18 @ 11.03, May KC down 13 @ 11.72, May MNPLS down 4 @ 11.71
Wheat inspections were at 15.9 mb with total inspections now at 664 mb
Wheat prices may be higher than value so fund managers may be reducing some of their net positions
Winter wheat crop rating fell to 30% good to excellent (vs 32% last week) – the lowest since 1996
Heavy snow in North Dakota and Canada may slow the planting of spring wheat
Some media outlets are reporting that Russia is starting a new offensive in eastern Ukraine

Brandon Doherty