Volatility in Wheat Futures Continues


Grains are higher. SF is up 4 cents sand near 13.97. SMZ is near 411.7. BOZ is near 73.17. CZ is up 2 cents and near 6.87. WZ is up 8 cents and near 8.49. KWZ is up 6 cents and near 9.47. MWZ is up 6 cents and near 9.58.

Soybeans are higher. There is little farmer selling above the market. There was talk that China bought a few soybean cargoes from Brazil Dec through March and 1 US PNW cargo. Not much to hold SF near 14.00. There were more China Covid cases reported. China has now locked down 28 cities or 200 million people and 25 pct of GDP. Recent selloff in US Dollar and rally in equities and Crude has helped trigger new buying in commodities including metals and soybeans. Weekly US soybean export sales are est near 800-1,600 mt vs 2,335 lw. Dryness in Argentina may also be helping soybean prices. Argentina has no soybean export price.

US weekly ethanol production was up 4 pct from last week. Stocks are up 12 pct from last year. US Argentina Ag Attaché lowered the corn crop to 52 mmt vs USDA 55. Argentina saw some rain but forecast is dry. Weekly US corn export sales are est near 350-1,000 mt vs 408 lw. US farmer remains slow in selling corn. Feeders and ethanol bids remain historically high. Low water has river basis historically low. Corn futures waiting for clarity in Ukraine export corridor closing or extension. Some feel there will be a shutoff of new vessels going into Ukraine in 10 days. Deal expires Nov 19. There is no ne Ukraine corn export price. Brazil is cheaper than US.

US south plains, Argentina, EU and Black Sea weather is mostly dry. E Australia is wet. Still, US HRW export prices are $90 over German and $110 over Russia. US SRW is $45 above French and $65 above Russia. Wheat futures price volatility will continue due to concern about South Hemisphere wheat supplies and Black Sea exports. Argentina wheat crop 13.7 vs USDA 17.5.

US Dollar is higher. US stocks are higher. Trade continues to be push and pulled on earnings reports. Gold, silver, copper and cotton are lower. Coffee, cocoa and sugar are higher.

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