Written Commentary
CORN
Corn futures are higher. CK is near 4.30 and could test last weeks high near 4.34. There is talk of increase China demand for Ukraine corn. Despite a record corn crop, Sino Grain has been given the green light to add to reserves. Weekly US corn export sales are estimated near 600-1,200 mt versus 820 last week. Ukraine corn is offered near $169 versus US $188. Weekly US ethanol production was up 7 pct vs last year. Stocks were highest since March,2023 and up 5 pct vs last year. Our weather guy released an outlook today suggesting 2024 summer temps could be warmer than normal.
SOYBEANS
Soybean and soymeal futures were higher. Initial SK resistance is 11.61. Soyoil and soymeal spread saw some profit taking. There continues to be unconfirmed talk that US may control the imports of used China cooking oil and Canada RSO for renewable fuel production. Abiove est Brazil soybean crop at 153.8 mmt vs 156.1 previous and 159 ly. Brazil exports were est at 97.8 mmt vs 98.1 previous and 101.8 ly. Brazil farmers increase cash sales but basis only hoping for futures rally. Jan US soybean crush is expected to be a new record for January. Most doubt USDA will make much changes to US 2023/24 soybean carryout in March but could increase crush and lower exports equal amount. Weekly US soybean export sales are estimated near 100-600 mt versus 55 last week.
WHEAT
Chicago wheat traded lower. Paris wheat futures were lower. Lower Russia export prices offered resistance. Russia needs to ship excess supplies. Weekly US export sales are estimated near 200-500 mt vs 233 last week. KWH saw some short covering before first notice. WH found resistance near 5.88, MWH near 6.70. Our weather guy released an outlook today suggesting 2024 summer temps could be warmer than normal. He is already concerned that shift from El Nino to La Nina could suggest west Midwest summer could also be drier than normal.
All charts provided by The Hightower Report
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