Grain Calls Mixed to Lower

Morning Outlook

No overnight trade. Grain calls are mixed. SF is near 11.84. SMF is near 395.9. BOF is near 37.86. CH21 is near 4.27. WH21 is near 5.96. KWH21 is near 5.50. Wed wheat futures selloff may be overdone.  CBOT grains close early today at 12:05. Palmoil futures higher after India lowered import tax. Managed funds may want to add to longs due to drier than normal South America weather.

Central Brazil and south half of Argentina will be dry over next 10 days. Key could be todays USDA export sales report. We will see if last week China was a seller or a buyer. Trade looks for sales to be near 700-1.400 mt vs 1,387 last week.  Some estimate China soybean imports near a record 102 mmt versus 95 last year. Brazil 58 versus 70 last year. US 38 mmt versus 16 last year. Argentina soybean crop estimate near 46.5 mmt versus USDA 51. Export sales only 4 mmt vs 8.6 ly.

A drier than normal central Brazil and Ukraine weather forecast should be positive to corn prices. Key could be todays USDA export sales report. Trade looks for sales near 800-1,400 mt vs 1,088 last week. Some est World corn trade near 138 mmt versus 120 last year. US 71 (2,795 mil bu) vs USDA 67 and 45 last year. Brazil 33 versus USDA 39 and 34 last year. Argentina 34 versus 40 last year. Argentamin corn plantings on hold near 31 pct. Crop rated 34 pct good/ex vs 53 ly. Ukraine 22 versus 29 last year. IGC lowered World corn crop 10 mmt to 1,146 vs USDA 1,444.

EU lowered wheat crop to 123 mt vs USDA 126. Argentina lowered wheat exports to 10 mmt vs USDA 12.5. CME Black Sea futures near 5 week highs. Australia futures near 11 week lows. Trade looks for weekly export sales near 200-400 mt vs 192 last week.

On Wednesday, Managed funds were sellers of 14,000 contracts of SRW Wheat, sold 17,000 Corn; sold 6,000 Soybeans, sold 2,000 soymeal and bought 2,000 lots of soyoil. We estimate the funds are net long 18,000 wheat, 267,000 corn, 224,000 soybeans, 78,000 soymeal and 111,000 soyoil. CFTC report is delayed until Monday due to the holiday.

 

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now