Grains are lower at midday:

Dec Corn – 12 ¾ cents/bu (5.09 ¾ )

Nov Soybeans – 7 ¾ cents/bu (11.90 ½ )

Dec Chi Wheat – 18 cents/bu (7.16)

Cdn $ +0.00115 (80.355 cents)

WTI Crude Oil -0.05/barrel (80.60)

Grains have been under pressure from the opening bell, despite the fact that all grains initially traded higher in the overnight session, and that soybeans were strong for the entire evening session.  Many of us in the trade expected to see stronger soybean values today, particularly after the USDA confirmed some large Export Flash Sales this morning an 9 am ET.  The government confirmed that China purchased 330,000 tonnes of soybeans overnight, and additionally there were 198,000 tonnes of soybeans sold to an Unknown Destination (presumed to be China).  In total, the two sales amount to 19.4 million bushels of soybean sales.  As well, the USDA also confirmed the sale of 161,544 tonnes of corn this morning to an Unknown Destination.

Despite these robust sales, corn has traded as much as 16 cents/bu lower, soybeans have traded as much as 14 cents/bu lower, and Chicago wheat has traded down as much as 21 cents/bu lower today.  Technical weakness is driving corn and wheat lower, as both cereals have broken through significant moving average prices on their respective December 2021 price charts (the 200 day moving average for corn was 5.18 ½ and the 50 day moving average for Chicago wheat was 7.26 ¾ ).

Soybeans continue to garner support from stronger vegetable oil prices, as soyoil is the only ag commodity in positive territory today.  Malaysian Palm Oil set another all time record high price overnight, as the reality of tight edible oil stocks in that region of the world is recognized.  New USA soybean crush plants are coming on line in the coming weeks/months, as demand for soyoil increases, which will result in increased domestic demand for soybeans down the road.