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Grains are Lower Finding Resistance


Grains are lower. SH is down 6 cents and near 15.29. SMH is near 486.0. BOH is near 60.94. CH is down 1 cent and near 6.82. WH is down 5 cents and near 7.47. KWH is down 6 cents and near 8.67. MWH is down 4 cents and near 9.17. US stocks are lower. US Dollar is higher. Crude is lower. Gold, silver, copper, coffee and cocoa are lower. Coffee, sugar and cotton are higher.

Soybean futures have found some resistance after Mondays gains. US season to date soybean exports are down 1 pct vs ly. Some feel Mondays rally was linked to a dry Argentina and S Brazil weather forecast and central Brazil rains slowing harvest. China PMI data improved to 50.1 vs 47.0 in Dec. China bought 4 Argentina Mar-Apr soyoil cargoes. SA weather and slow Argentina soybean crush helped soymeal futures make new highs. Dalian soybean, palmoil, soyoil prices were lower. Soymeal higher. Matif rapeseed and Canada canola are higher. US Dec soybean crush is est at 188 mil bu vs 198 ly. Some suggest US farmers should add to 2022 crop sales.

Corn futures were higher. Some feel large end users may be adding to March long as a hedge against future demand. US season to date corn exports are down 32 pct vs last year. Brazil March-Feb exports were near 50 mmt or up 4 mmt from USDA forecast. Matif corn is higher as domestic needs increase with supply slowed due to rail strikes. Ukraine lower priced feed wheat and corn increase imports to Poland and Romania has weighed on domestic prices there. There remains concern about Ukraine 2023 crop and lower planted acres.

Wheat prices are lower due to higher US Dollar and lower energy prices. Russia prices remain below US. US wheat season to date exports are down 3 pct vs ly. USDA rated KS, KY, TX wheat crops higher than early Jan. IL was rated highest at 85 pct G/E. USDA dropped CO, MT, SD, and OK WW crop ratings. S Plains is still dry. More rains are forecasted for Delta and SE SRW crops. Managed funds continue to be large net Chicago wheat futures shorts.

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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