Where A Landslide Brought Grain Prices Down. The Corn & Ethanol Report

We start off the day with the 5 Michigan economic indicators with Michigan Current Conditions Prel (FEB), Michigan Inflation Expectations Prel (FEB), Michigan Consumer Sentiment Prel (FEB), Michigan 5-Year Inflation Expectations Prel (FEB), Michigan Consumer Expectations Prel (FEB0, and Fed Williams Speech at 9:00 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and U.S. Budget Plan FY 2022 at 1:00 P.M.

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On the Corn front, the selloff or more accurately correction had traders’ hearts pounding is this overdone, is the bull market gone? The truth of the matter was the market was due a needed correction from the frenzy of buying and the fast and swift breaks did get traders attention that the USDA and WASDE numbers did not warrant such a move, even with so-called better weather prospects in South America. We must look at there was a feeling in the market that the buyer did not have to beware… And that usually is when the cloud of liquidation hits. I do believe when we start getting more positive export data a fresh line of buying will proceed. It still seems there is a commitment to buy U.S. product for obvious fundamental reasons which one is the price and stocks we have on hand to sell. Yesterday’s export sales showed a cancellation in old crop sales to destination unknown, while the Chinese came in and bought a large varying number of new crops which helped settle the psychological balance in the market. I am curious to know where those destinations unknown were, but in the grand scheme of things it does not really matter as U.S. exports remain hot. The grain complex seems to trade with the factor of a further correction has priced itself in and cooler heads will be watching new import orders to come in. While not confirming a bottom, which we may see some South American product come out of the woodwork, it is still safe to say the U.S. crop is not cringing on supply and the U.S. market is the safe haven for future importers at the moment. In the overnight electronic session, the March corn is currently trading at 543 ½ which is 2 ½ cents higher. The trading range has been 545 to 540 ¼.

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