Commodities Lower on Slowing Econ Growth

MORNING AG OUTLOOK

Grains are lower. SX is down 7 cents and near 10.04. SMZ is near 319.6. BOZ is near 40.69. CZ is down 1 cent and near 4.08. WZ is unch and near 5.66. KWZ is unch and near 5.76. MWZ is up 2 cents and near 6.09. Commodity prices are lower on fears of slowing global economic growth, shift in monetary policy cycles and seasonal trends. Crude is concerned about oversupply. Libya is moving toward a truce and one central Bank. This could increase oil production and wheat imports.


Perdue Univ US Ag Economy Barometer dropped 12 points in August. This lowest level since April and lowest August since 2016. Largest negative is depressed farm income. Drop in crop prices and higher cost offset record high yield potential.

 

SX is near 10.04.US crop was rated 65 pct G/E vs 67 last week and 53 ly. US exports are at 1,643 mil bu or down 14 pct vs ly. Brazil farmer increased sales. China anti dumping against Canada rapeseed weighed on World vegoil prices. Malaysian Augst palmoil production should increase. India August vegoil imports were down 17 pct. US June soyoil biofuel feedstock were up 5 pct, canola up 22 pct, tallow up 122 pct and used cooking oil up 31 pct.

 

CZ is near 4.08.. CZ traded over 50 DMA for first time since June. US crop was rated 65 pct G/E vs 65 last week and 53 ly..US 10 day Midwest forecast is dry. US exports are at 2,048 mil bu or up 40 pct vs ly. Some are adding 50 mil bu to their corn export est vs USDA. There is talk India could increase ethanol production which could increase corn imports for first time in 25 years. South America weather remans dry. Tuesday turnaround linked to talk Managed funds reduced their long stocks and short commodity spread position.

 

WZ is near 5.66. WZ traded over the 20 DMA. Next resistance is 5.75. Tuesday turnaround linked to talk Managed funds reduced their long stocks and short commodity spread position. US wheat exports were 211 mil bu or up 32 pct vs ly. USDA est US spring wheat harvest at 70 pct. 2 pct of 2025 US wither wheat crop is planted. Domestic India wheat prices ae up close to $9.00. Russia wheat export prices remain a discount to World sellers. Canada and Australia crops are ok. EU is wet, Black Sea is dry and US south plains is dry.

 

 

 

 

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