Mark's Market Talk
Jun 13, 2022
Last Friday the USDA released their June supply and demand report. The trade was expecting a quiet report and for the most part they got one. Old corn carryout was just a touch higher than expected while the bean carryout was a little less. Friday’s close showed corn a little higher while beans were 14 to 23 lower. This was opposite what the report told us, but beans were coming off a very good week and it looks like some of the traders wanted to take some profit out before the weekend. Otherwise, it was a higher week as July corn ended the week 46 cents higher while the Dec was 31 higher. July beans were 48 cents higher last week as the Nov contract closed 41 cents higher. Most areas received some good rain last week but now the forecast is for hotter drier weather for the near future. Some are forecasting a high-pressure dome staying over the Midwest until mid-July. That would be about when the main pollination occurs this summer which could cause havoc on the corn crop. In the past traders watched the fundamentals, studied the charts, and observed the trends. That has appeared to given way to daily news of war, inflation, tariffs, and world weather. Everyday there is some bit of news that moves the market. And we are talking large moves that we rarely saw before and are now becoming common place. Our current rate of inflation is worrisome. The price of goods is increasing at levels we have never seen before. This includes everything we as farmers buy. We always preach having a marketing plan, this is more important than ever. There is no doubt that you will handle more money than ever in the next year or so. You just need to make sure you keep your share.