February Grain Update

Feb 07, 2022

Grain bins

February Update.

January  brought us an eventful start to the year in the grain markets. We pushed to new highs in November soybeans and December corn futures, and we are seeing strength in the nearby contracts as well for any stored grain you may want to price. It’s been a nice way to start the year. I’d encourage everyone to check the bids on our website regularly or get in touch with me to discuss a plan or selling objectives that you may have in mind.

At the forefront of the market news is South American dryness as their crop progresses. Brazil’s soybean production estimates began at 144 million metric tons and have since been trimmed by the USDA to 139 million metric tons, with possible further reductions. 139 mmt would still be a record soybean crop, primarily due to expanding planted acreage offsetting yield decreases, but we need to keep a close eye on their weather as their summer season moves along. Argentina’s soybean production has seen slight estimate decreases as well.

The January WASDE report saw a slight increase in corn ending stocks relative to the previous month due to acreage increases, while the soybean ending stocks were close to unchanged. They stand at 1.54 billion bushels and 350 million bushels respectively. This puts corn stocks/use at 10.4% vs 10.1% in December and 8.3% the previous year. Soybeans are 8% vs 7.8% in December and 5.7% last year. So, the big picture is showing increases in U.S. ending stocks as compared to last year. The next USDA WASDE report is on February 9th. Please get in touch if you are wondering about estimates or post report details. 

Jory Bossuyt

Grain Lead & Merchandising

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