Corn is trading lower near midday, after trading higher earlier this morning following friendly Producer Price Index data, which showed inflation receding. Yesterday’s CPI data was also friendly and brough the dollar to a two-month low.
This morning, private exporters reported a flash sale of 124,000 metric tons of corn for delivery to Japan during the 2023/2024 marketing year.
Values of corn on a FOB basis have shown a discount for US corn compared to Brazil, but Brazilian exports remain active with ANEC expecting November shipments at 8.3 mmt.
The severe drought in the Amazon region of Brazil has caused water levels on rivers used for grain transportation to fall lower than expected, which is limiting barge movement for corn and soybeans.
Soybeans are trading lower today, after giving up earlier strength from overnight. Soybean meal is slightly lower, while soybean oil is higher.
Brazilian soybean exports are expected to reach 5.106 million tons in November, which would compare to 1.918 in the same month a year ago.
NOPA October US soybean crush is expected to be a record 187.237 mb. If that number is realized, October crush would be up 13.2% from September’s crush of 165.456 mb.
Analysts are expecting that the El Nino weather pattern will support crude palm oil prices, as major palm oil producing countries’ output will likely decline in 2024.
Wheat is mixed today, with Chicago and Minneapolis are slightly lower, but KC higher after yesterday’s friendly CPI data, and today’s friendly PPI data caused the dollar to drop significantly, showing that inflation may be easing.
Ukrainian grain exports have fallen by 30% year over year due to Russia’s attacking of port cities with 5.2 mmt of wheat exported for the season, which is down 12% from last year.
Wheat production in Kazakhstan has fallen by an estimated 5.6% from the last update or 13.0 mmt due to heavy rains and a delayed harvest.
Russia continues to dominate global wheat exports with the cheapest wheat available, and US exports have fallen sharply to the lowest levels in 52 years.
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.
