Written Commentary
MORNING AG OUTLOOK
Grains are mixed to lower. US stocks are higher. US Dollar is higher. Crude is higher but near $68. Gold is lower. Trump adding to cabinet.
SOYBEANS
SH is near 10.27. BOH is near 47 cents. Dalian soymeal futures were higher. Soyoil lower. EU rapeseed and sunseed prices are higher. US soyoil is competitive to World buyers. Higher palmoil prices could reduce US imports. Malaysian Oct production down from ly, exports above and stocks below. US weekly export inspections were delayed due to Mondays holiday. C/N Brazil seeing rains. S Brazil/Argentina dry. Bears are still looking for lower soybean futures due to record high South America supplies and lower China demand for US soybeans.
CORN
CH is near 4.44. Dalian corn futures were lower. Some look for nearby corn futures are near key resistance. US weekly export inspections were delayed due to Mondays holiday. N/C Brazil weather remains favorable for crops. S Brazil and Argentina weather drier. Futures have rallied on a need to buy cash corn for increase US export and ethanol demand. CZ-CH spread is firmer. US domestic processors bids are firm. US PNW corn export prices are competitive to Asia buyers vs SA. Brazil prices remain high due to talk of lower supply. This could lower Brazil exports. Seasonally, Ukraine should see increase corn export as long as logistics allow.
WHEAT
WH is near 5.81. KWH is near 5.70. MWH is near 6.13. US weekly export inspections were delayed due to Mondays holiday. Good rains have fallen across US HRW plains. This has increased US HRW farmer selling. Higher US Dollar, Australia and Argentina harvest offers resistance. There was talk that wheat took out some war premium out on Monday. Declining Russia supply offers support. Nov Russia export could be down from Oct but season to date pace near or above record.
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