World Wheat Prices in Freefall
Grains are lower. SK is down 5 cents and near 14.62. SMK is near 456.8. BOK is near 56.23. CK is down 1 cent and near 6.28. WK is down 9 cents and near 6.74. KWK is down 9 cents and near 8.13. MWK is down 6 cents and near 8.39. US Fed day. US stocks are lower. Crude is lower. US Dollar is lower. Gold, silver, copper, cocoa, sugar and cotton are higher.
World wheat prices are in freefall with not enough import demand and lower Russian prices. This despite dry US HRW weather and cold HRS and Canada temps. EU and Black Sea weather is mostly favorable. Prices in EU are so low to farmers that the EU Commission is proposing to mobilize €56 million to help Poland, Bulgaria, and Romania cope with lower wheat prices. EU farmers prices are below cost of production.
World/US corn futures are lower following wheat. Trade will be watching todays US ethanol numbers and tomorrows weekly US export sales. Matif corn futures are making new contract lows. Dalian corn futures are lower. Ukraine farmer is getting $3.50 for corn which is raising questions about the size of their 2023 acres and crop size. Brazil is out of the corn export market but drier weather will allow for increase plantings. Already Brazil is looking at a lack of storage for both the record corn crop and soybean crop. This could force farmers to sell corn. March 14 CFTC commit of traders report showed Managed funds sold 75,000 corn contacts and for the first time since August 2020 are short 54,000 contracts.
Soybean and soymeal futures are lower. Drier weather should help complete Brazil soybean harvest. Brazil is looking at a lack of storage for both the record soybean crop and corn crop. This could force farmers to sell soybeans. This is weighing on Brazil soybean export basis. Dalian soybean, soymeal, palmoil and soyoil prices are lower. March 14 CFTC commit of traders report showed Managed funds long 127,000 soybean contacts, 133,000 soymeal and short 3,000 soyoil. World vegoil prices continue to trade lower.
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