Corn Futures Hang on to Early Week Gains
- March CBOT corn futures added 1-1/4 cents this week to close at 676-1/4
- December 2023 CBOT corn futures shed 2-3/4 cents this week to close at 595-3/4
- Japan was the biggest buyer of US corn in the week ending January 12th, picking up a net 13.4 million bushels, followed by Mexico at 10.7 million. Corn export sales were better than expected and came in at an eight-week high
- The Buenos Aries Grain Exchange cut its estimate for corn production to 44.5 million tons which would be down from 52 million tons last year; Corn planting is nearing 90% complete now in Argentina
- After trading to a fresh 10-week high to start the week, front month corn futures faced pressure to end the week closing just slightly higher on the week
- Urea futures at the US Gulf of Mexico traded down to $400/ton last week, this is down $300/ton from their recent highs set in late August of this year
New Crop Soybeans Sharply Lower This Week
- March CBOT soybean futures shed 21-1/4 cents this week to close at 1506-1/2
- November 2023 soybean futures shed 41 cents this week to close at 1352.
- China will be on holiday until the end of the month, celebrating the Lunar New Year; Historically, China has been absent from buying grains or oilseeds during this time period
- China was the largest buyer of US soybeans in the week ending January 12th, picking up a net 18.6 million bushels, 11.5 million of that was a switch from previous sales to unknown destinations
- AgResource sampled fields across Mato Grosso, Brazil, last week; Their samples much confirmed the ‘impressive crop potential’ in Brazil’s largest soybean producing state
- After trading to new highs for their recent move higher, soybean meal futures tumbled to end the week closing over $12.50/ton lower week over week
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Wheat Prices Hang Near Recent Lows
- March CBOT wheat futures shed 2-1/4 cents this week to close at 741-1/2
- March KCBOT wheat futures added 4-1/4 cents this week to close at 848
- March MGEX spring wheat futures added 3/4 of a cent this week to close at 912-3/4
- Many wheat producing areas of the plains states have yet to see significant drought relief but a lack of new export business is keeping pressure on wheat prices
- A Farm Futures survey indicated that larger US wheat plantings are expected; Total 2023 wheat acres are estimated at 48.8 million acres, a 7% increase from the earlier season; If realized, that would be the largest wheat crop sown in the US since 2016; Winter wheat seedings are projected to expand 5% to 34.9 million acres and Spring wheat is seen at 13.9 million, up 12% from last year
Milk Futures Lower on the Week
Second month Class III and IV futures both closed lower on the week, losing 34 and 38 cents, respectively. Last week these contracts managed to move higher despite a struggle in the spot markets but this week’s selling pressure was too much to overcome. Quarterly milk prices for both Class III and Class IV were mostly lower for 2023, except for Class III Q4 contracts which were up nearly a dime per CWT from last week. Most other quarters were down over 20 cents on the week with Class IV Q3 leading the charge lower with a weekly loss of nearly 55 cents. The GDT event from the beginning of the trade week was down just a point from the previous event on 1/3. Prices from this last event were roughly $2.01/lb on butter and $2.20/lb on cheddar.
Author
Keegan Madigan