CORN
- Corn is trading slightly lower this morning after posting a small gain yesterday, but prices are in an overall downward trend.
- Tuesday’s USDA crushings report showed a higher ethanol grind than expected, and today, the ethanol production number will be revised with expectations at 1.075m b/d.
- Global shipping issues have pressured the entire grain market with freight rates rising drastically and continued issues in the Red Sea which is causing some to bypass that route and instead pass around the southern tip of Africa.
- Yesterday, funds were estimated buyers of around 1,000 contracts of corn, and they hold a short position of around 177,000 contracts.
SOYBEANS
- Soybeans are trading lower this morning along with the rest of the grain complex as rain continues to fall in the driest areas of central and northern Brazil.
- Both soybean meal and oil are trading lower this morning as well, and the anticipation of a normal sized Argentina crop could put more pressure on meal.
- Despite the decline in soybean prices since the beginning of the year, processor margins have actually improved by about 20 cents which could improve domestic demand.
- Bunge has shut down a soybean crushing plant in Decatur, Indiana due to a damaged gas pipeline, but the facility is expected to reopen soon.
WHEAT
- Wheat futures are lower for the fourth consecutive day in all three classes as a lack of export demand and improved crop ratings domestically pressure futures.
- The US Dollar Index has moved significantly higher since December 28 which makes US wheat less competitive in the global market, and Russia has maintained control over global exports.
- India’s wheat production is estimated to make a new record of 115 mmt for 23/24 thanks to improved weather, but global wheat supplies are still in danger of declining this year.
- Yesterday, funds sold an estimated 2,500 contracts of wheat, and their estimated net short position is near 65,000 contracts. Since the beginning of December, funds have covered a large portion of that short position.
Author
Amanda Brill