Written Commentary
MORNING OUTLOOK
Grains are lower. SH is down 7 cents and near 15.73. SMH is near 453.6. BOH is near 64.41. CH is down 3 cents and near 6.31. WH is down 12 cents and near 7.56. KWH is down 11 cents and near 7.80. MWH is down 6 cents and near 9.15.
Grains seeing profit taking in front of USDA and Conab reports. US stocks are mixed. US Dollar is higher. Crude is lower. Gold, silver, copper, sugar and cotton are lower.
Dalian soybeans were lower. Soymeal higher. Dalian soymeal stocks only 7 days vs 1 normal. Dalian palmoil and soyoil prices are lower. The dry areas of South America are drier. Temps will be above normal. Trade is looking for USDA this week to drop SA soybean crop 10 mmt from Jan. Some could see final SA 2022 soybean crop down another 14 mmt. This could add to demand for US soybean and soymeal demand and push futures higher. China are buyers of US soybeans.
Corn futures were unable to make new highs. US farmer is a steady seller of old and new crop corn. Most look for lower South America supplies to increase demand for US corn. One crop watchers estimates Brazil corn crop at 112 mmt. First crop 22 mmt. Brazil corn supply could run low before 2nd crop July harvest. 2nd crop 89 mmt. Brazil domestic corn price near $8. Dalian corn futures were higher.
Wheat futures are lower. Wheat futures choppy trade within a broad trading range continues. EU wheat futures are lower on a slowdown in demand. Most look for USDA to raise US and World end stocks tomorrow. Appears threat of Russia invading Ukraine may be in decline. US south plains and N Africa are dry. May be a good 30 days away from trading the dryness.
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