IGC Lowers World Wheat Crop
MORNING AG OUTLOOK
TGIF. Grains are higher. SN is up 7 cents and near 13.40. SMN is near 416.4. BON is near 47.60. CN is up 2 cents and near 5.57. WN is up 6 cents and near 6.18. KWN is up 4 cents and near 8.61. MWN is up 3 cents and near 8.32. US stocks are higher. US Dollar is lower. Crude is higher. Gold. Silver, copper, coffee, cocoa and sugar are higher.
Soybeans are higher overnight. Argentina lowered their soybean crop to 21 mmt from 22.5. USDA is 27.0. 6 pct of the crop is harvested. SN has dropped from a high on April 18 of 15.01 to 13.23. favorable US 2023 crop start and slower US export demand triggering long liquidation and new selling. At the same time, SMN dropped from 468.2 to 412.8. Argentina is offering soymeal for export. ABIOVE raised Brazil soybean crop to 155.0 from 153.6 and soymeal exports to 21.4 from 21.0. ABIOVE also increase Brazil soybean export to 95.7 mmt from 93.7. US new crop open soybean export sales are near historic low.
Corn futures are up marginally. CZ held 5.00 support. China corn export sales cancellation and good start to US crop has been negative to futures. CN has dropped from April 18 of 6.47 to 5.47. IGC raised their est of World 2023/24 corn production to a near record 1,217 mmt or up 9 mmt. Most of the increase is Brazil up 3 mmt to 130.2 and China up 3 mmt to 279.4. US total export commit remains down 35 pct vs last year and near 38.0 mmr vs 58.9 ly. US Ethanol margins continue to remain positive.
Wheat future are up slightly. Since May 17, KWN has dropped from 9.18 to 8.45. This due to increase chance of rains across US south plains HRW area. This despite fact annual KS wheat tour estimated KS crop at only 178 mil bu and a yield of 30 vs USDA 29 and 45.2 5 year average. There has been some talk that Poland wheat might be imported to US east coast. Ukraine export corridor is open but inspection of 62 vessels is very slow. Ukraine President will visit G7 meeting in Japan. IGC lowered World wheat crop 4 mmt to 783 due to 4 mmt drop is US to 45.2.
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