Written Commentary
MORNING AG OUTLOOK
Grains are mixed. SX is down 7 cents and near 12.95. SMZ is near 419.8. BOZ is near 53.82. CZ is unch and near 4.95. WZ is unch and near 5.86. KWZ is up 1 cents and near 6.71. MWZ is up 7 cents and near 7.37. US stocks are lower. US Dollar is lower. Crude is unch and near $88.
Soybean futures are lower. There is some follow through technical selling from Friday. North Brazil forecast is dry. Continued dry Brazil weather could push SX eventually higher. Argentina received needed rains. US soybean harvest is est near 74-77 pct. Some fear trade disruption due to Middle East and Ukraine tension. N Brazil dryness may slow their exports. Key remains China demand for US soybean and Brazil weather.
Corn futures are unchanged. Unconfirmed rumors of China interest in US PNW corn pushed CZ closer to 5.00. US corn export commit and Ethanol use is higher vs ly. Increase difficult logistics in Brazil could create some short term window of opportunity for improvement in US export demand. Dry Brazil and higher US exports could push CZ above 5.10. US farmer is trying to store 2023 crop but could be running out of space in the east.
Wheat futures are mixed. There are unconfirmed rumors of China interest in US SRW wheat. Combined Argentina and Australia crops could be down 8 mmt vs ly. Russia continues to offer wheat for export at below $230 without buyers. Managed funds remain short 104,000 Chicago wheat contracts. Demand for higher World wheat protein demand offered support to MWZ.
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