Market Update – Thursday January 27, 2022

  • Soybeans soared yesterday as scattered rains in South America were perceived to be too little too late, coupled with strong demand for North American soybeans, the markets found this as an opportunity to forge new highs
  • Wheat saw a sharp sell off as cooler heads seem to be prevailing in the Russian-Ukraine conflict – the market will still be watching this situation closely and any bump in the road escalating tensions is likely to pull a positive reaction from wheat and corn going forward
  • IHS Markit (formally Informa) updated their estimates for 2022 U.S. planted acres – now factoring in the official winter wheat planted acres from the January USDA report 
    • Corn now pegged at 91.489 million acres – slightly down from last estimate of 91.578 million – and below 2021’s 93.4 million
    • Soybeans pegged at 87.805 million acres – down from last estimate of 88.815 million- still above 2021’s 87.2 million 
  • Brazilian analyst Safras & Mercado updated their production estimate for 2022 soybean production from 90 MMT to 85.5 MMT yesterday
  • Weekly U.S. export report was strong this week – corn and wheat exceeding expectations and soybeans landing on the higher end of expectations and well above last week