Grains are mostly higher this morning:

Dec Corn + 2 ½ cents/bu (5.39 ¼ )

Nov Soybeans – 2 ¾ cent/bu (12.53 ¼ )

Dec Chi Wheat + 11 ½ cents/bu (7.37)

Cdn $ -0.00040 (78.96 cents)

WTI Crude Oil -0.59/barrel (74.43)

Grains appear to have stabilized this morning, following yesterday’s release of a bearish (for corn and soybeans) USDA Quarterly Stocks Report.  That report showed a surprising increase of just over 80 million bushels to the average trade guess for the 2020/21 ending stocks of both corn and soybeans.  The carryout for soybeans got bumped up to 256 million bushels, which is quite comfortable considering that earlier in the crop year, some pundits had the USA soybean carryout well under 100 million bushels.  Final corn carryout is pegged at 1.236 billion bushels, which is not onerous at all, but is well above what earlier projections were for as well.

Both beans and corn spent a lot of the evening session in negative territory, with corn trading down as much as 4 ¾ cents/bu and soybeans trading down 5 ½ cents/bu.  Yesterday, soybeans traded down to a 3 ½ month low on the bearish USDA Stocks Report.

The market will spend the next couple of weeks assessing 2021 harvest yields and looking for signs of renewed export interest.   It had a lot of negative news thrown at it yesterday, but after we get through this year’s harvest pressure, fundamentally, we should continue to see long term support for grains and for commodities in general.  Inflation concerns are ramping up all over the world, and grains will not be spared from those inflationary pressures.  Lots of rumblings coming out of the USA Midwest about the price of fertilizer, and how that may negatively impact corn acres next spring as well.  With strong wheat prices underpinning the entire grain complex, we are likely looking at the biggest battle for acres in 2022 that we have ever seen.