TFM Morning Update 08-31-2023

CORN

- - Markets are treading quietly this morning with corn up only a penny as technical trade is bearish and weather bullish.
  - This weekend, hot temperatures are expected to return with virtually no rainfall in the forecast. Minnesota and Iowa have better rain chances over the next 7 days,
  - The weather conditions may be causing the crop to mature too rapidly with many producers seeing ears drop already.
  - US ethanol stocks fell by 5% to 21.609 million barrels and analysts had been expecting 22.599 mln bbl.

- - Soybeans are unchanged this morning while soybean meal is lower and soybean oil higher.
  - The 14-dollar level remains significant resistance for November soybeans as producers have been more willing to sell at that level.
  - Today’s export sales report should show a large increase in commitments to China or unknown destinations after the recent string of sales.
  - South American soybean meal was offered as much as 9 dollars a ton lower yesterday with the market under pressure as trade anticipates an expansion of US soybean plantings.

- Wheat is trading lower this morning with a new contract low in Dec Chicago wheat and KC wheat with a new yearly low.
- SRW values are now approaching parity with other world exporters which could finally see US exports begin to pick up.
- Russia has said they would talk to Turkey about an alternative to renewing the grain deal where they would sell grain to Turkey at a discounted price with financial support from Qatar.
- Wheat production in Canada is expected to be 14.2% lower than last year’s crop, according to estimates released Tuesday by Statistics Canada on its website.

Amanda Brill