GRAIN MARKET VIEW
August 31, 2023 – Market Focus
Good morning, Farmer Family …
Corn prices fell 1.65%.
Soybean eased 0.05% lower.
The rest of the soy complex was mixed, as soymeal rose 0.88%, while soyoil slumped by 1.53% lower.
Wheat prices also were mixed. Chicago SRW showed the most upside, grabbing gains of 1.23%. Kansas City HRW rose 0.66%, while Minneapolis spring wheat lost 0.93%.
Total wheat acres for the upcoming 2023/24 season could rise 5.8%, per the results of the latest Farm Futures grower survey.
Low water levels on the Mississippi River could slow movement of both corn and soybean crops to export terminals.
Grain traveling the US railways totaled another 13,312 carloads last week.
Ethanol production for the week ending August 25 had a daily average of 1.007 million barrels, per the latest data from the U.S. Energy Information Administration. Stocks were at 21.6 million barrels.
The USDA confirmed private sales of 266,000 metric tons of U.S. new-crop soybeans to unknown destinations.
Corn basis bids stumbled 17 cents lower at an Iowa processor and dropped 5 cents at two other Midwestern locations while holding steady elsewhere across the central U.S..
Soybean basis bids shifted 5 to 10 cents lower at two Midwestern processors while holding steady elsewhere across the central U.S..
Commodity funds were net sellers of Chicago soybeans, soyoil, corn and soymeal futures and net buyers of wheat.
This morning, Chicago soybeans were largely flat, corn slightly rose, while wheat eased.
For the month …
The most-active soybean contract on the Chicago Board of Trade was up around 4.1% this month, its biggest monthly gain since February 2022.
CBOT corn lost 5.8% so far this month, the largest monthly fall since June.
Wheat was down more than 9% in August.
Harvesting of 2023-24 winter wheat progressed to 96pc complete, spring wheat at 32pc and barley at 38pc, canola harvest was 5pc complete.
Crops condition, in the Central region, mostly ranged from fair to good.
Brazil has issued a waiver for early soybean planting in Mato Grosso, now allowed to begin September 1st.
Brazil’s 2nd crop harvest is seeing some delays as a front has stalled over center Brazil, and is bringing heavy rain accumulations.
Argentina’s latest preferential exchange rate for soy exports will be adjusted in September to maintain the preferential rate and encourage sales during the ongoing wicked domestic inflation.
European wheat prices rose, on fresh news for French wheat, from the latest international Egyptian tender.
Rapeseed prices fluctuated, but the November contract remained well below €470/t.
Egypt’s GASC received 45 bids in its latest wheat purchase tender, with no fewer than 15 suppliers taking part.
Russian wheat has lost its competitive edge because of the price floor and the competition with Romania and Bulgaria, Andrey Sizov said.
Russia’s foreign ministry said the Russian and Turkish foreign ministers would discuss a Russian proposal for an alternative to the Black Sea grain deal this week.
The first import shipment carrying privately procured 55,000 tons of wheat has left Russia for Pakistan.
Malaysian palm oil prices ended higher, on warm weather amid the high-demand festive season in India.
Australian pulses prices, barley gained support, wheat and canola ease.
Jordan MIT booked 60k MT of feed barley for the second half Feb 2024 shipment.
Leading South Korean feedmaker Nonghyup Feed Inc. (NOFI) has issued an international tender to purchase up to 138,000 metric tons of animal feed corn to be sourced from optional origins.
This morning, oil prices eased after data showed China’s manufacturing activity shrank for the fifth month in a row. Investors also awaited a U.S. personal consumption expenditure report later in the day.
This morning, Asian stock markets were mostly lower after Japanese factory activity and Chinese service industry growth weakened.
This morning, the dollar declined to 145.97 yen from Wednesday’s 146.20 yen. The euro edged down to $1.0919 from $1.0923.