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Beans Are Up, Corn & Wheat Down


Grains are mixed. SH is up 4 cents and near 15.38. SMH is near 493.8. BOH is near 60.97. CH is up down 2 cents and near 6.72. WH is down 4 cents and near 7.57. KWH is down 6 cents and near 8.74. MWH is down 5 cents and near 9.19.

US stocks are lower. US Dollar is lower. Crude is lower. Gold, silver, copper, coffee, cocoa, sugar and cotton are lower. World food prices dropped for the 10th month in a row. Peak was in March, 2022. Peak was due to Russia invasion of Ukraine. Drop linked to increase Russia and Australia exports.

Soybeans are higher as Argentina forecast is drier and Brazil forecast remains cool and wet. China domestic soymeal trade is slowing. There were no new US sales or Brazil sales to China. Season to date US soybean export commit is near 1,738 mil bu or up 5 pct vs ly. US only needs to sell 250 mil bu more to reach USDA goal but fact there is a record 100 mil bu unshipped open sales could increase chance for switching to cheaper Brazil on net cancellations. Concern about lower US bio diesel fuel demand has dropped soyoil pct of board crush to 28 pct. Argentina soybean crop is traded 12 pct G/E vs 7 lw and 38 ly. Dalian SOYBEAN, soymeal. palmoil and soyoil prices were lower. SH near key 15.50 resistance.

Corn is lower despite good weekly US export sales. Brazil corn export line up is record 8.9 mmt for this time of the year. Season to date US corn export commit is near 1,008 mil bu or down 43 pct vs ly. Fund are beginning to roll out of March and July longs to Dec near 80 cent and 68 cent inverse. Argentina corn crop is rated 22 pct G/E vs 12 last week. Slow new export demand weighed on EU Matif corn futures. Ukraine export prices are higher as Brazil and Argentina export supplies are declining. Normal 2023 us Midwest weather should continue to weigh on futures. CH is near key 6.70 support.

Wheat futures are also lower on continued competition for US export by lower Russia prices. Parts of east and SE US south Plains could see rains into the weekend. West areas remain dry. Funds still holding on to near record WH short on talk of slower World/US economies. Season to date US wheat export commit is down 6 pct vs ly. Matif wheat futures are lower and lowest since before Ukraine war. WH is near 7.50 support.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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