Wednesday, March 29, 2023
Closing Markets: Corn +3 old & -2 new. Beans +10 old & -1 new.
Wheat +5.
TFG WILL OFFER FREE DP ON CORN OFF THE FARM STARTING APRIL 3RD AT THE EMERY AND KRUGER LOCATIONS. THIS WILL BE BASED ON SPACE AVAILABILITY AT THESE LOCATIONS.
THE LAPLACE TFG LOCATION WILL BE CLOSED THURSDAY 03/30 AND FRIDAY 03/31. ALL PHONE CALLS MADE TO THIS OFFICE WILL BE TAKEN CARE OF BY OTHER OFFICE PERSONNEL! WE APPRECIATE YOUR BUSINESS!
Market Recap:
Grains started out the session higher today from several different factors. The main one being the uncertainty surrounding Black Sea exports following Cargill’s announcement it would be suspending exports from Russia. This will take place within the next year but has some importers already questioning the ability of the Black Sea to supply needed grain to the world market. Building concerns over US weather for corn planting and the developing wheat crop also gave the grains strength. More positioning for the upcoming USDA reports took place today as well as month and quarter end. Importers are starting to show concern over their available credit needs for purchases which is starting to weigh on futures, especially the US as we are one of the highest priced sources in the global market.
May corn futures finished today’s session higher. Uncertainty over Black Sea exports moving forward provided this support, as did another flash sale to China. This is the 11th corn sale in the past 12 sessions. Cumulative US corn sales still trail expectations and are down from last year. China is also a large buyer of Brazil corn at this time which tempered advances. Brazil harvest is advancing on soybeans and more corn sales are taking place to make room for new crop bushels. This has caused corn basis in Brazil to start softening which will start to attract import interest, same as it has for soybeans. We continue to hear concerns over the quality of corn coming out of Ukraine which is not surprising so it’s quite possible China is buying US corn for blending purposes.
May soybeans were higher. Soybeans have rallied over 60 cents in the three previous sessions which added to the hesitation to extend futures, especially with the US already at a sizable premium to Brazil in the global market. Brazil load times on soybeans are growing but this is not deterring import interest, yet. China is buying large volumes of soybeans from Brazil, which is not a surprise, but trade is questioning how long this may last. China is seeing lower meal demand due to spreading swine fever which will lower crush use.
May wheat in Chicago was up. Wheat futures posted moderate advances today as fresh buying interest surfaced in the market. This was initially from the need for risk premium in the market given current weather conditions and crop reports out of the US. India is also reporting crop loss from recent weather and will maintain export restrictions as a result. News that Cargill and Viterra would be suspending Russian grain exports gave the complex additional support, although it is quite likely Russia firms will step in to cover these losses.
Have a great evening!
April Morgan
Grain Originator – Atwood, IL
Topflight Grain Cooperative, Inc.
Phone: 217-615-1348
Email: amorgan@tfgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
Closing Markets: Corn +3 old & -2 new. Beans +10 old & -1 new.
Wheat +5.
TFG WILL OFFER FREE DP ON CORN OFF THE FARM STARTING APRIL 3RD AT THE EMERY AND KRUGER LOCATIONS. THIS WILL BE BASED ON SPACE AVAILABILITY AT THESE LOCATIONS.
THE LAPLACE TFG LOCATION WILL BE CLOSED THURSDAY 03/30 AND FRIDAY 03/31. ALL PHONE CALLS MADE TO THIS OFFICE WILL BE TAKEN CARE OF BY OTHER OFFICE PERSONNEL! WE APPRECIATE YOUR BUSINESS!
Market Recap:
Grains started out the session higher today from several different factors. The main one being the uncertainty surrounding Black Sea exports following Cargill’s announcement it would be suspending exports from Russia. This will take place within the next year but has some importers already questioning the ability of the Black Sea to supply needed grain to the world market. Building concerns over US weather for corn planting and the developing wheat crop also gave the grains strength. More positioning for the upcoming USDA reports took place today as well as month and quarter end. Importers are starting to show concern over their available credit needs for purchases which is starting to weigh on futures, especially the US as we are one of the highest priced sources in the global market.
May corn futures finished today’s session higher. Uncertainty over Black Sea exports moving forward provided this support, as did another flash sale to China. This is the 11th corn sale in the past 12 sessions. Cumulative US corn sales still trail expectations and are down from last year. China is also a large buyer of Brazil corn at this time which tempered advances. Brazil harvest is advancing on soybeans and more corn sales are taking place to make room for new crop bushels. This has caused corn basis in Brazil to start softening which will start to attract import interest, same as it has for soybeans. We continue to hear concerns over the quality of corn coming out of Ukraine which is not surprising so it’s quite possible China is buying US corn for blending purposes.
May soybeans were higher. Soybeans have rallied over 60 cents in the three previous sessions which added to the hesitation to extend futures, especially with the US already at a sizable premium to Brazil in the global market. Brazil load times on soybeans are growing but this is not deterring import interest, yet. China is buying large volumes of soybeans from Brazil, which is not a surprise, but trade is questioning how long this may last. China is seeing lower meal demand due to spreading swine fever which will lower crush use.
May wheat in Chicago was up. Wheat futures posted moderate advances today as fresh buying interest surfaced in the market. This was initially from the need for risk premium in the market given current weather conditions and crop reports out of the US. India is also reporting crop loss from recent weather and will maintain export restrictions as a result. News that Cargill and Viterra would be suspending Russian grain exports gave the complex additional support, although it is quite likely Russia firms will step in to cover these losses.
Have a great evening!
April Morgan
Grain Originator – Atwood, IL
Topflight Grain Cooperative, Inc.
Phone: 217-615-1348
Email: amorgan@tfgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
