Written Commentary
ADM Appoints Monish Patolawala as EVP and CFO
July 10, 2024
MORNING AG OUTLOOK
Grains are lower. SK is down 7 cents and near 15.10. SMK is near 450.6. BOK is near 55.56. CK is down 5 cents and near 6.48. WK is down 14 cents and near 6.76. KWK is down 18 cents and near 8.54. MWK is down 14 cents and near 8.75. US stocks are lower. US Dollar is higher. Crude is lower. Gold is higher. Silver, copper, cocoa and cotton are lower. Coffee and sugar are higher.
Soybean futures are lower. SK is gaining on SN. This could be trying to buying warehouse beans. Spread also trying to slow demand. Brazil soybean export premiums are lower trying to buy new demand. SK is also overbought. Trade evening up before long US holiday weekend. CBOT closed Friday. There is talk due to lower Argentina supply a few US SBM/DDG cargoes are heading to EU. SK board soybean crush margin dropped below 100 cents.
CZ dropped to 2 week low. CK is back near the midpoint of recent trading range. US farmer increased cash sales at recent high. Favorable US Midwest forecast should help farmers plant the 2023 crop. Key in final acres and harvest acres will be amount north and south farmers put acres in prevent plant. Summer weather remains key with USDA Outlook Forum US corn yield 4 bpa above previous record. CK is also overbought. Trade evening up before long US holiday weekend. CBOT closed Friday. Trade will be watching todays US ethanol data and Thursdays export sales for new demand news.
US wheat futures are lower. GFS weather model puts rain in its forecast for dry US SW HRW. EU model is dry. US north plains and Canada prairies weather forecast is warmer which could trigger meltdown, flooding and delay plantings. Matif wheat futures are lower. EU weather is favorable. Still, EU 2023 wheat outlook is only World exporter with a forecast of higher supply. Russian ruble is at all time low. This could be reflecting lower economy but helps their export price which are already lowest vs other exporters.
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