Mixed to Higher Grain Outlook

MORNING OUTLOOK

Grains are mixed to higher. SH is up 4 cents and near 14.96. SMH is near 472.0. BOH is near 64.24. CH is unch and near 6.54. WH is up 3 cents and near 7.47. KWH is up 4 cents and near 8.36. MWH is up 2 cents and near 9.04. US stocks are higher. US Dollar is lower. Crude, gold, silver, copper, coffee, cocoa, sugar and cotton are all higher. Friday’s wage data could suggest more dovish US Fed.

Corn futures are trading sharply unchanged. Concern about lower export and ethanol demand offers resistance. China reopening policy may be helping commodities. USDA report Jan 12. Average est for US 2022/23 carryout is 1,314 vs 1,257 previous. Range 1,181-1,404. Average trade est for Argentina corn is down 3 mmt to 52. One group est the crop closer to 49. Trade est Brazil near 126.3 vs USDA 126 and 116 ly.

Soybean futures are marginally higher. Soyoil is gaining on soymeal. China reopening may be offering support. Argentina is still dry. USDA report Jan 12. Average est for US 2022/23 carryout is 236 vs 220 previous. Range 205-289. Trade estimates Argentina soybean crop at 46.7 mmt vs USDA 49.5. One group lowered their est 10 mmt to 40 vs USDA 49.5 ly. Trade est Brazil 2023 crop near a record 152.3 mmt vs 127 ly. Brazil harvest has started. Protest in Brazil adds to uncertainty there.

Wheat futures are higher. Lower US Dollar may be offering support. China reopening may be offering support to commodities. Rising tide lifts all boats. US and N Africa dryness continues a concern. Normal 2023 north hemisphere weather is needed to increase global 2023 supply. WH resistance is 7.60. Some suggest US bakers to add to flour coverage. USDA report Jan 12. Average est for US 2022/23 carryout is 580 vs 571 previous. US 2023 winter wheat acres are est at 34.5 mil acres vs 33.3 ly. HRW 23.8 VS 23.0 ly. SRW 6.9 vs 6.6 ly.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2024 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now