This week, Will and Ben look at how mixed crop conditions in Argentina and Brazil are impacting U.S. commodity exports.
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Market recap (changes on week):
- March corn up $.14 at $6.80
- December 2023 corn up $.02 at $5.88
- March soybeans up $.40 at $15.30
- November soybeans up $.23 at $13.62
- March soybean oil down $.01 at 61.04 cents/lb
- January soybean meal up $23.60 at $485.50/short ton
- March wheat up $.23 at $7.43
- July wheat up $.24 at $7.54
- January WTI Crude Oil down $4.04 at $77.65/barrel
Weekly highlights:
- US crude oil, gasoline and ethanol stocks increased last week while distillate stocks decreased. Gasoline demand was up slightly on the week, but 4% down year over year. Ethanol production was up slightly coming in at 298 million gallons on the week increasing ethanol stocks to 5% over the five-year average.
- It was another decent week for agricultural export sales- soybean sales continue in a counter seasonal move increasing week over week. China represented about 83% of those sales. Corn sales were down week over week but above their four-week average thanks to strong purchases from Mexico.
- Open interest positions were up across the board for Chicago wheats, corn and soybean. Corn open interest positions were up 2% and soybeans were up 3%. Managed money positions were up for feed grains: wheat up 7,435 net positions decreasing their net short, corn up 9,660 positions increasing the net long and soybeans were down 22,037 positions decreasing their net long.
- On the agricultural export inspections front- soybeans continue to show strength with 68.2 million bushels shipped on the week. Wheat was also strong at 16.4 million bushels. Corn shipments were relatively soft, and that deficit continues to grow.
Topics:
- Market recap
- South American crop production
- China buying U.S. soybeans
- Trade expectations
- Interest rate expectations
- Reports to watch
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Find more agriculture news at: brownfieldagnews.com
