Argentina Rains Offer Resistance to Ags
Grains are lower. SH is down 2 cents and near 15.22. SMH is near 479.0. BOH is near 63.96. CH is down 2 cents and near 6.78. WH is down 2 cents and near 7.39. KWH is down 5 cents and near 8.36. MWH is up 1 cent and near 9.02. US stocks are lower. US Dollar is lower. Crude, silver, cocoa are lower. Copper, coffee, sugar and cotton are higher.
Soybean futures are lower. SH reversed yesterday after making new high for the move. A higher US Dollar and lower crude plus rains in Argentina offered resistance. US weekly export sales are delayed until Friday due to Mondays holiday. Trade awaiting new news on China imports. News could be delayed starting Sunday due to China New Year holiday. Brazil soybean export prices are below US with 4.5 mmt in export line up. MG Brazil harvest is near 2 pct. Matif rapeseed is near 13 month low as Germany withdrew RSO use in bio fuel. China Dec hog slaughter was up 18 pct from Nov and 7 pct vs ly. China government asking farmers to slow production after hog prices have dropped 50 pct from Oct. Some est US farmer 75 pct sold 2022 soybean crop.
On Wednesday Corn made new 10 week high before closing lower. Concern about export and ethanol demand and rains in Argentina offered resistance. Higher Dollar and lower Crude also weighed on corn futures. Brazil has shipped 2.7 mmt of corn in Jan and has 3.7 mmt in line up. Argentina farmer corn sales are only 6.9 mmt vs 14.4 ly. Matif corn prices are higher with increase domestic demand supportive. Ukraine corn export prices remain below US. CH is testing first support near 200 DMA at 6.78. Some est US farmer 55-60 pct sold 2022 crop.
Wheat futures are mixed. More moisture across north HRW and all SRW crop areas is reducing dry areas to SW HRW offers resistance. Black Sea wheat to Algeria was $40 below US HRW. USDA est of higher US 2023 WW acres also offers resistance. France increased export est. Putin wants to slow exports?
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