Written Commentary
MORNING OUTLOOK
What a week. Grains are mostly higher. SX is up 3 cents and near 12.25. SMZ is near 346.1. BOZ is near 58.92. CZ is up 2 cents and near 5.71. WZ is up 5 cents and near 8.17. KWZ is up 4 cents and near 8.32. MWZ is up 5 cents and near 10.59.
US stocks, Crude, gold, silver, copper, coffee, cocoa, sugar and cotton all lower. OPEC feels higher Crude prices will slow demand.
Argentina and central Brazil rains. S Brazil dry. Midwest dry. Canada snow. EU and Black Sea dry.
Weekly US corn export sales est at 700-1,400 mt, soybean 950-1,800 mt and wheat 200-500 mt. US corn carryout 1,492, soybean 340, wheat 583. US cash corn and soybean basis firm.
China bought 12-15 US gulf Nov-Dec soybeans. Only 2 days of use. Active domestic soymeal trade. Dalian soybean, soymeal, soyoil and palmoil futures higher. Corn lower. China buying Ukraine corn. Matif, Canada and Dalian rapeseed all higher and new highs. Matif rapeseed all-time high.
USDA est China corn imports 26 mmt. China est 20. Exporters 30. So far US 12, Ukraine 7. There are rumors that China will eliminate tariffs on US DDG imports in January. Corn futures 3 month higher weekly close. Argentina 29 pct planted. crop rated 84 pct G/E. Matif corn futures traded higher. Prices still below wheat. EU corn exports higher. EU imports lower.
KC futures made new highs on talk of tight World exporter supplies, potential drop in EU Russia exports. Wheat futures dealing with Australia quality concerns, Argentina GMO issue and Ukraine/Russia conflict. Russia export prices will need to rally to offset higher export tax and force farmers to sell export. Argentina wheat harvest 12 pct. Crop rated 50 pct G/E. Brazil millers do not want Argentina GMO wheat. Australia wheat futures higher due to wet harvest. Matif wheat futures new highs. Black Sea higher.
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