GRAIN MARKET VIEW
August 10, 2023 – Market Focus
Good morning, Farmer Family …
Corn prices faded 0.98% lower.
Soybeans added 0.13%, soyoil rose 0.36%, while soymeal slumped 1.34%.
Wheat prices stumbled noticeably lower, with Chicago SRW tumbling 3.24%, Kansas City HRW fell 1.17%, and Minneapolis spring wheat lost 1.32%.
Weekly EIA data showed a lower output per day during the week that ended 8/4, and it was the lowest since June 9th, while ethanol stocks increased.
USDA announced a private export sale for 251k MT of new crop beans to China in a mandatory announcement.
Grain traveling the US railways for 2023 reached 575,290 carloads, still 11.8% below last year’s pace so far.
Corn basis bids held steady across most Midwestern locations, but were mixed at several ethanol plants after firming 10 cents at an Indiana facility while tracking as much as 5 cents lower at an Illinois location.
Soybean basis were mostly steady across the central U.S. but did tilt 10 cents lower at an Ohio elevator and tumble 35 cents lower at an Iowa river terminal.
Commodity funds were net sellers of CBOT corn, wheat and soymeal futures contracts, and net buyers of soybean and soyoil futures.
This morning, the most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $13.13-1/4 a bushel, as of 03:20 GMT, and corn rose 0.3% to $4.95-3/4 a bushel.
Wheat climbed 1% to $6.41-1/4 a bushel.
Harvest of winter wheat reached 60% complete.
Spring wheat conditions were little changed, rated mostly fair to good.
Canola conditions ranged from fair to mostly good, while sunflowerseeds remained in good to excellent condition.
Argentina’s Rosario grains exchange issued an upbeat forecast for the 2023/24 soybean and corn harvests, predicting 48 million metric ton for soybeans, and 56 million tons for corn.
In Germany, rain continued to delay the wheat harvest.
The quality of the French milling wheat could be affected by the frequent rains and the cool temperatures recorded at the end of July.
Financial investors reduced their net long position in Euronext wheat futures and options last week.
A fire that broke out on Thursday at grain silos in the French port of La Rochelle was under control and had not reached the stored grain, silo operator SICA Atlantique said.
Correct “Starting November, a decree established a trade mechanism that allows opening special bank accounts by authorized banks to foreign buyers from friendly countries, with a simplified procedure, to support export transactions of Russian grain and other ag products with settlements in ₽₽₽ through Russian Commodity Exchanges”.
Freight shipping costs in the Egypt tender were up pretty moderately on last week’s tender from Egypt.
The Chinese corporation Xian Ai Rui intends to purchase large volumes of wheat in the North Kazakhstan.
India will provide 5 million metric tons of wheat and 2.5 million tons of rice to bulk consumers such as flour millers.
Prices for northern barley are up around $20/t for the week.
Wheat prices rallied on dry conditions.
Algeria has issued a tender to buy up to 80k tons of corn from Argentina for August 15-31 shipment. Closing date is August 10, 2023.
Jordan’s state grain buyer has issued an international tender to buy up to 120,000 metric tons of milling wheat which can be sourced from optional origins. The deadline for submission of price offers in the tender is Aug. 15.
Notably, Brent crude settled $1.38, or 1.6%, higher at $87.55 a barrel, its highest since Jan. 27.
West Texas Intermediate crude (WTI) closed $1.48, or 1.8%, higher at $84.40, at its highest since November 2022.
This morning oil prices steadied ahead of U.S. inflation data.
Brent crude indeed edged up 14 cents to $87.69 a barrel by 07:57 GMT while West Texas Intermediate crude (WTI) crept up by 1 cent to $84.5.
Notably, the S&P 500 fell 31.67, or 0.7%, to 4,467.71, for its sixth drop in seven days.
The Dow Jones Industrial Average lost 191.13, or 0.5%, to 35,123.36, and the Nasdaq composite sank 162.31, or 1.2%, to 13,722.02 as Big Tech stocks led the declines. This morning, Asian benchmarks were mixed.
Japan’s benchmark Nikkei 225 added 0.8% to finish at 32,473.65.
Australia’s S&P/ASX 200 added 0.3% to 7,357.40.
South Korea’s Kospi lost 0.3% to 2,596.62.
Hong Kong’s Hang Seng slipped 0.2% to 19,208.28, while the Shanghai Composite rose 0.3% to 3,253.08.
The EUR/USD rose by +0.19%, while the USD/JPY rose by +0.22%.
This morning, the U.S. dollar edged up to 143.99 Japanese yen from 143.67 yen. The euro cost $1.0995, inching up from $1.0979.