Grains Lower on Slow US Demand
Grains are mixed to lower. SK is down 5 cents and near 15.13. SMK is near 481.9. BOK is near 60.62. CK is down 2 cents and near 6.37. WK is down 6 cents and near 7.02. KWK is down 8 cents and near 8.08. MWK is down 7 cents and near 8.65. China modest increase in growth target may be offering resistance. US stocks are lower. Crude is lower. Difficult to find trade direction. US GDP growth est .7 drop to 2.2 pct gain. Hard landing recession or no landing due to superflow unemployment. Slow demand for US grain export or tight US supplies.
CK may be in a 6.20-6.60 range. Lower price could be due to bearish USDA 2023 US corn numbers, slow US export pace and increase World feed wheat supply. Fact S America is out of the corn export market offers support. Argentina weather is dry with some private crop est near 38 mmt vs USDA 47. Assuming normal US 2023 weather, farmers should increase old crop sales near 6.60 and new crop 6.00.
SK found support near 14.75 on Argentina weather concerns. SMK found support near 465. Argentina weather is dry with some private crop est near 30 mmt vs USDA 41. Record Brazil soybean supply could offset the lower Argentina supply. Assuming normal US 2023 weather, farmers should increase old crop sales near 15.50 and new crop 13.00. Higher US cash soybean crush margins helped push domestic soybean basis higher. Concern about China pace of economic growth could slow their commodity demand.
Wheat futures are lower. Cheap Russia wheat limits upside in wheat. Some weather watchers are afraid of LH April cold temps could stress the US SRW crop and early planted southern corn. Canada is dry. US south plains are dry especially SW. Australia could have a lower 2023 wheat crop due to El Nino. 2022 weather uncertainty should be offering support.
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