Corn is trading slightly higher near midday, but prices remain near their lowest levels of the year despite the forecast for hot and dry conditions until next week.
Dryness is forecast all along the Corn Belt and Midwest over the next 7 days, but the heat will be most intense in the western Plains while the eastern Corn Belt should not experience the extreme heat as much.
Export sales were nothing to write home about with 9.2 mb reported for old crop corn, up 16% from the prior 4-week average and new crop sales at 27.7 mb. 17.5 mb of corn was shipped, and 51 mb more needs to be shipped in the next 3 weeks to meet the USDA’s estimate.
US ethanol stocks rose by 2.4% to 23.435 m bbl, but analysts were expecting 22.83. Plant production was 1.069 m b/d compared to the survey average of 1.035.
Soybeans are trading higher, while soybean meal continues its downward trend and soybean oil continues higher with demand for biofuels rising.
This morning, the USDA reported 3.4 mb of export sales for old crop soybeans which was down 42% from the prior 4-week average. 51.7 mb of new crop sales were reported, and shipments were 16 mb. 30 mb more of soybeans need to be shipped within the next 3 weeks to meet the USDA’s estimates.
Brazilian food and fuel processor Caramuru Alimentos has started selling soybean-based ethanol at one of its plants in Brazil.
Soybean oil prices are getting a boost from higher palm oil on talk of increased imports from India, helping to firm soybean oil’s percent of crush value to 6-month highs, while also adding support to soybeans.
Wheat is trading lower but has backed off its earlier morning lows as trade ignores the concerns of Russian attacks on Ukrainian port cities.
Regarding the attacks in the Black Sea region, the markets seem to only react on the day that grain silos are destroyed, or agricultural infrastructure is destroyed. By the next day, markets are content to trend lower.
Ukraine’s August grain exports out of the Danube River are reported at 820,000 metric tons so far as the river becomes Ukraine’s main export route.
A container ship has left the port of Odesa in the Black Sea despite Russia’s threats to attack vessels after Ukraine announced their own humanitarian corridor to release the cargo ships that have been stuck.
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.
