Grain Futures Lower Start


Grains are lower. SN is down 1 cent and near 16.76. SX is near 15.19. SMN is near 411.8. BON is near 83.05. CN is down 3 cents and near 7.98. CZ is near 7.54. WN is down 25 cents and near 12.52. Overnight high was 12.80. KWN is down 30 cents and near 13.37. Overnight high was 13.68. MWN is down 26 cents and near 13.67. Overnight high was 13.94.

US stocks are lower. Crude is higher and near $114. US Dollar is higher. Gold, silver, copper coffee, cocoa, sugar and cotton are lower.

Soybean futures are slightly lower. Higher domestic basis to crushers and talk of increase US crush and exports demand offers support. Trade estimates US 2021/22 soybean carryout closer to 200 vs USDA 235. Failure to attract new buying to push SN over 17.00 and talk of potential increase in China covid lockdowns offers resistance to most commodities. US Fed Chairman hawkish interest rate comments raised concern that US Fed will increase rates until Inflation slows. This could push US into a recession. Midwest rains could slow US soybean planting pace.

Corn futures are lower. Despite talk US exports will increase, current export pace limits new buying and a push over contract highs. Trade estimates US 2021/22 corn carryout closer to 1,275 mil bu vs USDA 1,440. Trade will be watching today US ethanol production and stocks data. Trade estimates US ethanol use at 5,400 vs USDA 5,375.Trade also estimates US corn exports closer to 2,700 vs USDA 2,500.  Midwest rains could slow US soybean planting pace.

Wheat is lower on talk of lower global economic growth. This mostly due to supply chain challenges and higher inflation especially food and energy. First day of US annual HRW crop tour yield in N KS at 39.5 bpa vs 59.2 ly. CO wheat crop is estimated near 40 mil bu vs USDA estimate of 49 and 69 ly. NE 37 mil bu vs USDA 41 ly. USDA estimates OK crop at 60 vs 115 ly. TX is estimated near 41 vs 74 ly. US north plain rains could reduce US HRS acres.

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