Corn is trading lower this morning on momentum from Friday’s WASDE report that saw higher production in the US for 23/24 as yields were increased to 177.3 bpa, up significantly from the previous week.
South American corn production was not lowered as much as trade had expected despite dry conditions with Brazil pegged at 127 mmt down from 129 mmt last month, and Argentina unchanged at 55 mmt.
Corn prices in Brazil have declined over the past week due to the beginning of the first crop corn harvest and an overall decrease in demand.
For the week ending Tuesday, January 9, non-commercials sold another 33,397 contracts of corn increasing their net short position to 230,723 contracts.
Soybeans are trading higher this morning and although they had a negative reaction to the WASDE report, they settled significantly off of Friday’s lows.
The USDA increased soybean ending stocks and overall production, but supportive was that the US stocks to use ratio is only 6.7%, and CONAB has released Brazilian production numbers that are closer to 150 mmt and are likely more accurate.
December soybean crush was seen at a record 192.6 mb which was up 8.5% from this time last year and up 1.9% from last month.
Friday’s CFTC report showed funds as sellers of soybeans by 19,619 contracts increasing their net short position to 31,248 contracts.
All three wheat classes are trading slightly higher this morning after last week’s USDA report which was mostly bearish apart from the wheat seedings number.
Wheat seedings were expected to decline by around 800,000 acres but the report revealed a decline of 1.4 million acres. World wheat ending stocks also fell slightly which was supportive.
Ships carrying over 1.3 mmt of grains have been diverted from the Red Sea to other routes due to attacks against Houthi rebels, adding to world shipping issues.
Friday’s CFTC report showed funds as buyers of wheat by 2,289 contracts decreasing their net short position to 57,988 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
