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- Corn is trading lower this morning after prices began to rebound on Thursday and Friday of last week. Last week’s stronger export sales were supportive.
- In Brazil, spot corn prices have been in a downward trend with Argentina’s wet forecast pointing to improved production, and Brazil seeing improvements in its forecast as well.
- Last week, China released import data that showed 2023 imports of corn at 27.1 mmt. Total imports were for December were 4.95 mmt and the largest month in Chinese history.
- Friday’s CFTC report showed non-commercials as sellers of corn by 29,819 contracts which increased their net short position to 260,542 contracts as of Jan 16.
- Soybeans are trading slightly lower this morning with pressure from soybean meal while soybean oil trades slightly higher. Soybean meal hasn’t fallen this low since July of 2022.
- Last week’s strong export sales report and unexpected flash sale to China both added support to the market, but trade appears to be fixated on the upcoming South American harvest.
- In 2023, Chinese imports of soybean from Brazil rose by 29% while imports from the US fell by 13%. Shipments from Brazil totaled 69.95 mmt as China opted for their cheaper soybeans.
- Friday’s CFTC report showed non-commercials as sellers of 45,549 contracts of soybeans which increased their net short position to 76,797 contracts.
- All three wheat classes are trading lower this morning with the rest of the grain complex after some turnaround last week. Export sales were better than expected for wheat.
- Shipments of European wheat are avoiding the Suez Canal to avoid the fighting by Houthi rebels and are using alternative routes to reach Asia and Africa.
- The escalation of the conflict in the Middle East over the weekend could result in higher crude oil which would eventually raise the prices of other commodities.
- Friday’s CFTC report showed non-commercials as sellers of 10,587 contracts of wheat which increased their net short position to 68,575 contracts.