Corn is trading slightly lower to start the week as trade looks to rainfall in parts of the eastern Corn Belt this weekend while ignoring areas in Iowa, Minnesota, and South Dakota that saw flooding.
In Brazil, the harvesting of both first and second crop corn crops are off to a good start thanks to warm and dry weather in key regions. Sales have been slow however, as buyers wait for lower prices and sellers hold firm.
Friday’s export sales report showed total sales below the range of trade estimates at 20.1 million bushels. Despite lower sales, they are still 2.5% above the 15-year average of total sales.
Soybeans are trading higher this morning as futures bounce off long term support after the November contract closed at the lowest level since 2021. Soybean meal is trading higher while soybean oil is slightly lower this morning.
On Friday, the USDA reported that 640.5k tons of soybeans were sold last week which compares to 380.1 mb the previous week and 626.3 mb a year ago. China was a top buyer of US soybeans at 214k tons.
With China making such a large soybean purchase last week, it may be an indicator that the US is becoming more competitive with Brazil, or that the recent weather events in Brazil have cut the size of their crop to an estimate closer than CONAB’s.
Wheat is mixed this morning with Chicago and KC wheat trading lower while Minneapolis wheat remains slightly higher. As prices slide back down to their pre-rally levels, importers may show renewed interest.
World weather is currently threatening for the wheat crops with both Russia and Ukraine forecast to receive hot and dry weather in the coming months, potential flooding in the US Midwest, but Australia receiving more rain than expected.
In Russia, SovEcon has revised wheat production lower again at 127.4 mmt which would compare to 144.9 mmt the previous year. This production decrease may be priced in at this point considering that there were reports of dry weather and frosts causing problems months ago.
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.
