Turnaround Wednesday? Grains Are Higher
Turnaround Wednesday? Grains are higher. SX is up 8 cents and near 13.89. SMZ is near 399.5. BOZ is near 66.40. CZ is unchanged and near 6.10. WZ is up 1 cent and near 8.03. KWZ is up 1 cent and near 8.74. MWZ is up 4 cents and near 9.17.
US stocks are lower. US Dollar is unchanged. Crude is unchanged. Gold, silver, copper and sugar are lower. Coffee, cocoa and cotton are higher. US Dollar is trading above 20 day moving average resistance. Slower China and EU economies is helping the Dollar. US Central Bank increasing interest rates to fight inflation versus US economic growth offers support to the Dollar. Central Bank minutes today.
Good/needed rains fell in MO. Heavy rains today move AR. MS and AL. Extreme US weather continues with record high temps in TX, SW and OR. Temps are near normal across US Midwest for corn grain fill. Rains are forecast next week in S plains, Delta and SE.
Brazil corn export price remain below US. July Brazil corn was 120 below US. Brazil Nov corn is 130 above US. US SW corn basis is softening as corn and sorghum harvest nears but basis has been as high as +95. Some estimate that TX, OK, KS, NE and CO has loss 500 mil bu of feedgrains. This could increase demand for US Midwest corn. Tight global feedgrain supplies offers support to corn futures post US harvest and into South America 2023 harvest. CZ could be in a 5.90-6.40 range.
Crude oil futures may be finding support which could help support soybean futures. Concern over China demand has weighed on soybean and soymeal futures. Lower China pork demand has reduced China soybean imports. Hog margins are improving which could help increase demand for US soybeans. US crushers are back from downtime with basis firm. SX support near 13.50. Expect sideways price action until early September.
Wheat futures remain in a trading range. Increase flow of Ukraine exports offers resistance. Talk of higher Russian wheat crop and exports also offers resistance. Forecast of 2.00-4.00 inches of rain across TX and OK over next 7 days also limits new buying. NOAA though estimates that west TX/OK/KS need more rain to end record drought. Some feel that Wheat futures could follow financial markets direction and outlook for slower economies and higher interest rates slowing food and commodity demand.
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