TFM Morning Update 04-24-2023

CORN

Corn is trading lower this morning as the 7-day forecast for much of the Corn Belt shows less rainfall and warmer temperatures that should get planting moving.
Basis bids for corn shipped by barge to US Gulf Coast export terminals declined last Friday, and export premiums fell due to large supplies coming out of South America.
Friday’s CFTC report showed non-commercials as net buyers the previous week increasing their net long position by 22,322 contracts to 49,434 contracts.
The spike in spring fieldwork and near-term demand caused fertilizer supplies to tighten at New Orleans and inland, contributing to higher prices for urea, phosphates, and potash.

Soybeans are mixed this morning with front months slightly higher but deferred contracts lower as domestic demand keeps nearby prices supported but the Brazilian harvest pressures new crop.
The US has bought Brazilian soybeans after their prices dropped significantly, and two vessels carrying a combined 79,150 tonnes of Brazilian soybeans are heading to the US within the next few days.
Soybean meal is trading slightly higher while soybean oil is trading lower along with a slight drop in crude oil as palm oil slips as well.
Friday’s CFTC data showed funds buying 9,760 contracts of soybeans which increased their net long position to 134,782 contracts.

All three wheat classes are trading higher this morning as more unfavorable weather is forecast. Texas is not forecast to receive rain that they need, and Kansas and Oklahoma are receiving some scattered showers tomorrow but it is likely not enough.
Jordan’s state grain buyer issued an international tender to buy up to 120,000 tonnes of milling wheat that can be sourced from optional origins.
IKAR has cut Russian wheat production by 2.3% to 84 m tons from an earlier forecast of 86 m tons due to problems in eastern Russia and the Volga region.
Friday’s CFTC data showed that funds bought back some of their net short position, buying back 1,264 contracts and reducing their net short position to 102,983 contracts.

Amanda Brill