Written Commentary
MORNING OUTLOOK
Risk on. Grains are higher. SN is up 13 cents and near 16.89. SX is near 15.03. SMN is near 448.4. BON is near 80.52. CN is up 5 cents and near 8.04. CZ is near 7.41. WN is up 12 cents and near 10.94. KWN is up 19 cents and near 11.72. MWN is up 19 cents and near 11.96.
S&P 500 is lower and near 4,279. US Dollar is up near 101.85. Crude dropped to $98. Nat gas is higher. Gold, silver, copper, coffee, cocoa, sugar and cotton are higher. Grains are higher due to slow start of 2022 crop plantings. China Covid lockdown offers resistance. Traders watching Ukraine war and US interest rates headlines.
July corn futures are back above 8.00. CZ is near 7.40. USDA estimated US 2022 corn plantings near 7 pct vs 15 average. IL is 2 vs 21, IA is 2/15, NE 10/11. Wet Midwest weather could continue to slow plantings. US corn exports are at 1,374 mil bu or down 16 pct vs ly. Some report China could be done buying US old crop corn. US farmer corn sales have slowed.
USDA estimated US 2022 soybean plantings near 3 pct vs 5 average. IL is 1 vs 8, IA is 1/3, AR 12/21. US soybean exports are at 1,712 mil bu or down 16 pct vs ly. Some report China has slowed buying US/Brazil soybeans after an active week last week. US farmer soybean sales have slowed. Looking for 16.00 SX. China gas, diesel and jet fuel demand down 20 pct. East China gas demand down 40 pct. This due to Covid lockdowns. Brazil soybean selling increased. Canada 2022 canola acres est down 3 pct.
US winter wheat rated 27 pct G/E vs 30 lw and 49 ly. KS 26, AR 77. US spring wheat planting is near 13 vs 15 average. ND 4 vs 8. US south plains dry, north plains wet. Australia 2023 wheat crop est at 29 mmt vs 36 this year. US wheat exports 675 mil bu or down 19 pct. Canada 2022 wheat acres est at 24.2 vs 23.4 ly.
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