Grain Calls Mixed To Start Off 2023
Grain calls are mixed. SH is near 15.24. SMH is near 471.0. BOH is near 64.07. CH is near 6.78. WH is near 7.92. KWH is near 8.88. MWH is near 9.38. US stocks are higher. Crude is lower. US Dollar is higher. Gold continues higher. Copper is higher. Coffee, cocoa, sugar and cotton are lower.
Most 2023 grain news is the same as 2022. Key to especially soybeans, soymeal and corn price direction could be Argentina and S Brazil January weather. Argentina saw better than expected rains over the long weekend. 10 day outlook is dry. Then US spring weather. Some feel US farmers should increase old and new crop cash sales on higher soybean and corn futures. Weak La Nina could suggest above average US 2023 corn and soybean crop and 2023/24 carryout.
Talk of record Brazil 2023 crops and continue lower Ukraine corn and Russia wheat prices could offer resistance to 2023 soybean, corn and wheat futures. Wheat futures are supported by talk that 2023 export supplies may have peaked. Higher Dollar today could offer resistance. Funds remain short wheat against long soybean and corn positions. Corn futures may find resistance near 7.00 unless Argentina crop drops below 45 mmt. World corn demand is absent and US ethanol data is bearish. Demand for US soybean exports are in decline.
USDA report Jan 12. Some est US 2022/23 corn carryout near USDA 1,257, soybean 260 vs USDA 220 and wheat 585 vs USDA 571. Same group est US 2023/24 corn carryout near 2,040(180.5 yield, 3.4 mil more acres), soybean 400(1.0 mil more acres) and wheat 600(1.5 mil more acres).
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.