Written Commentary
MORNING COMMENTS
Ag Fundamentals:
Mexico purchased 1.623M MT (63.896M bushels) of corn from the US this morning. 41 million bushels for 24/25 marketing year and 22.8 million bushels for 25/26 marketing year. Is Mexico worried the south American corn crop will fail and prices rise to $5 or are they concerned about future tariffs from the US? The upcoming election is still very close and the uncertainty that surrounds it has multiple sectors of the market reacting every day. Soybean spreads are acting like a crowbar trying to loosen the grip of the US farmer. The SX/SF (Nov/Jan) spread has firmed 7¢ in seven trading sessions. Processors only have 2 weeks worth of ownership and the farmer isn’t excited about selling after the nearby bean board has drop 70¢ in the last 15 days due to rain popping up in Brazil’s forecast. Taking the carry out of the market may help loosen up some nearby bushels. The US Farmer is still around 30% sold for both corn and beans for this 24/25 marketing year.
Weather:
Parts of northeast Wisconsin, Michigan and Ohio received rain in the last 72 hrs. Chicago even got a sprinkle, but the rest of the country has been dry. Freezing temps are expected to reach as far south as the Ohio river valley tonight, but then the US will warm up to mid 40s min temps. Storms may roll into the western half of Kansas and Nebraska in the next 7 days, but showers are not expected to extend into the Midwest.
The Current Soil Moisture Map is looking very poor. The last 30 days have been some of the driest on record for the center of the US.
South America’s 30 day Anomaly Map shows northeast Brazil dry and above normal rainfall in south Brazil, northern Argentina.
Export & World News
The US sold 131K MT of soybeans to China in a flash sale yesterday morning.The US also sold 120K MT of winter wheat to Mexico. This morning the US sold 1.623M MT of corn to Mexico and 332K MT of corn delivered to unknown destinations. Additionally the US sold 175K MT of beans to unknown destinations this morning.
Malaysian palm oil futures were up overnight 63 ringgit, at 4335.
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