September 6, 2023 – Market Focus

Good morning, Farmer Family …

Main Markets

US farm markets were mixed but mostly higher, on Tuesday.
Corn prices grabbed 0.93% gains.
Soybeans failed to follow suit, easing 0.31% lower.
The rest of the soy complex also eroded into the red, as soymeal contracts spilled 0.47% lower, and soyoil closed down 0.76%.
Wheat prices closed in the green, after Chicago wheat hit a three-month low, attracting some bargain buyers. Chicago SRW indeed gained 0.63%, Kansas City HRW added 0.24%, Minneapolis spring wheat picked up 0.33%.
The weekly Export Inspections report had 378,595 MT of soybeans shipped for the week that ended 8/31, and finished the season at 52.25 MMT. Corn shipments in the same week were at 481,309 MT, for a total season of 37.26 MMT. For wheat, data had 299,862 MT of shipments for the week that ended 8/31, for a total 2023/24 season of 4.33 MMT.
Separately, the USDA confirmed private sales of 251,000t soybeans for delivery to unknown destinations during the 2023-24 marketing year.
Corn basis bids were steady to soft after dropping 15 cents at a Nebraska processor and tumbling 25 cents lower at an Indiana ethanol plant.
Soybean basis bids fell 20 cents at two Midwestern processors and dropped 17 cents at an Ohio elevator while holding steady elsewhere across the central U.S..
Commodity funds were net buyers of CBOT corn and wheat futures contracts. Funds were net sellers of CBOT soybean, soymeal and soyoil contracts.
After the sessions close …
The Weekly Crop Progress report from USDA had 1% of the national 24/25 winter wheat crop planted, while spring wheat harvest was 74% complete.
The report showed the soybean in good or excellent conditions at 53%, while corn crop was rated at 53% in good or excellent conditions.
This morning, Chicago soybean prices rose, recouping the last session’s losses.
Wheat rose for a second session. Corn also picked up.
South America
According to CONAB, as of September 3, Brazil’s second-crop corn harvest rate was 89.2% complete, while wheat harvest was at 13% complete.
Argentina’s government published a decree formally announcing its fourth soy dollar scheme in a year.
Weekly data showed European Union soft wheat exports so far this season had reached 5.03 MMT by Sep 3. Barley exports, in the same period, totalled 1.45 MMT.
European Union corn imports so far, in the 2023/24 season, had reched 2.69 MMT, by Sept. 3. Soybean imports had reached 2.39 million metric tonnes. Rapeseed imports in the same period totalled 519,789 tonnes. Soymeal imports totalled 2.61 million tonnes, while palm oil imports stood at 547,838 tonnes.
European wheat prices eased to a fresh seven-week low.
German milling wheat with 12% protein content, was offered about 4 euros over the Euronext Dec contract.
French corn is trading at the lowest levels since Russia-Ukraine started.
Rapeseed prices closed 2% lower after hitting a three-week low.
A senior Ukrainian official on Tuesday rebuffed a suggestion by Turkey that Kyiv should soften its stance to revive the Black Sea grain deal.
Ukraine’s agriculture ministry said the country’s 2024 winter wheat area likely will rise to 4.3 million hectares. Farmers have already started the winter wheat sowing.
Ukrainian agricultural exports rose 16% month-on-month in August despite the failure of a Black Sea shipping corridor, the UCAB agricultural business association said.
Ukrainian wheat with 11.5% protein content, was offered under $200 a ton FOB for consignments in Sep from Reni and Izmail ports, commercial source said.
There are some doubts on the Russian origin of about half a million metric tons of wheat that Egypt’s state grains buyer bought from trading house Solaris in a private deal in recent days. “Solaris has the competences and capabilities to source deals from other origins, especially when European countries sell wheat at a discount to Russia”, RusGrain Union said in a statement.
Russian consultancy Sovecon saw its forecast for Russian exports to 48.6 million metric tons in the 2023/24 season.
Heavy rain in northeastern China’s Heilongjiang province this month could delay grain ripening and harvesting, the country’s weather bureau said.
South-East Asia
Malaysian palm oil prices closed down for a second straight session.
Malaysia’s palm oil inventories at the end of August likely jumped to a six-month high.
According to India’s Food Secretary Sanjeev Chopra, forecast September falls of rain across various parts of India are expected to mitigate crop damage and ensure sufficient food supplies after a delayed monsoon and dry August.
Australian dollar plumbed to a 2023 lows.
Lineups data showed currently 2.68Mt of total grain on the stem for September.
The 8-day weather forecast parts of southeast NSW, Vic and SA will have 5-15mm of rain, while Qld has none.



Energy markets
Oil prices settled at 10-month high as Saudi, Russia extended their voluntary supply cuts to the end of the year.
This morning, oil prices reversed course, as investor expects demand concerns to linger amid a firm dollar, while Iranian supply is rising.
Ocean freight markets
The Baltic Exchange’s main sea freight index in London declined as capesize rates hit a near six-month low, offsetting a rise in panamax vessel rates.
Equity markets
US stock indexes settled lower, as weaker-than-expected economic news from China and the Eurozone sparked a risk-off sentiment in asset markets. Higher global bond yields also weighed on stocks.
This morning, shares were mostly lower in Asia.
Currency trading
The dollar index rose and posted a 5-1/2 month high, on higher US T-note yields, and weaker-than-expected economic news from China and the Eurozone.
This morning, the dollar slipped to 147.44 Japanese yen from 147.73 yen late Tuesday. The euro rose to $1.0732 from $1.0721.
South Korea’s Major Feedmill Group (MFG) purchased about 55,000 metric tons of animal feed wheat thought likely to be sourced from the Black Sea region in a private deal this week without issuing an international tender.

That’s all, thank you.
We wish you a nice day.

Author: Sandro F. Puglisi

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