Written Commentary
MORNING AG OUTLOOK
Grains are mixed. US stocks are mixed. US Dollar is slightly lower. Crude is slightly higher. Gold is higher and at new highs. Market volatility could increase as US election nears. Brazil is getting rain. Argentina is getting rains. Rains are forecast for US Midwest and east plains. EU and Ukraine weather is dry.
SOYBEANS
SF is near 9.82. Dalian soybean, soymeal, palmoil and soyoil futures were higher. China announced 20 days of closing ports to review quarantine rules. This could back up vessels at China ports. This could add to demurrage and weaken US basis and widen spreads. Some est Brazil crop at record 169 mmt which should provide pressure to futures February forward. Brazil soybean export basis lower. Argentina rains are better. World vegoil prices higher led by palmoil due to seasonal drop in production.
CORN
CZ is near 4.13. Dalian corn futures were higher. S Korea bought 201 mt US corn. FOB price highest since July. Low water raising US logistic challenges and offering weakness to domestic basis. Brazil corn futures are higher for 8th straight session and Real is at 3 month low. Some look for nearby corn futures in a range from 3.90-4.30. French and Ukraine weather is dry. US Midwest should see rains to help soils for 2025.
WHEAT
WZ is near 5.70. KWZ is near 5.72. MWZ is near 6.03. Talk that France sold 3 cargoes to Morocco helped EU prices. Russia prices remain low. USDA lower than expected rating of US winter wheat rallied futures. USDA rated the US winter wheat crop at 38 pct G/E vs 47 ly. Some look for nearby Chicago wheat futures in a range from 5.50-6.00. Argentina prices near 7 month low due to favorable crop conditions. Australia futures were lower on good harvest yields.
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