CORN
- Corn is trading slightly higher to begin the day after posting solid gains at yesterday’s close reaching a one-month high of $4.97-1/2 for December.
- Yesterday, the USDA reported good export sales of corn in the amount of 71.5 mb for both 23/24 and 24/25 with Mexico picking up the bulk of the business.
- In South America, both Argentina and northern Brazil are too dry for planting while southern Brazil is dealing with flooding. 14% of the corn crop in Argentina is planted.
- In the US, corn crops experiencing moderate to intense drought rose by one point from last week to 59%.
SOYBEANS
- Soybeans are trading higher this morning along with both soybean meal and oil. November beans tested support on Tuesday and have closed higher each day after that.
- The decline in prices of soy products has put pressure on soybeans and yesterday, December soybean oil made a new three-month low. This comes after the contract had 675 deliveries.
- Prices found support yesterday after the export sales report showed better numbers than expected, and soybean meal exports were reportedly up 32% from a year ago with limited Argentinian supplies.
- Barge shipments down the Mississippi River increased last week with barge rates declining, and soybean shipments were up 30.6% week over week.
WHEAT
- Wheat is trading slightly higher along with the rest of the grain complex this morning as the momentum from yesterday’s higher closes carries into today.
- Yesterday, there were some escalations in Ukraine with fresh Russian drone attack on two port cities, and news of a cargo ship registered to Turkey hit a mine in the Black Sea near Romania’s coast.
- The dry weather patterns in Argentina and Australia may significantly impact their wheat crops, and Ukraine is talking about planting less wheat this season, so global supply may drop slightly.
- Russia has raised their 2023 grain harvest forecast to 135 mmt with the wheat crop now expected at 90 mmt.
Author
Amanda Brill