Soyoil up Following Climate Action Bill
Grains are higher. SU is up 26 cents and near 14.83. SQ tested 16.46. SMU is near 450.0. BOU is near 65.17. CU is up 10 cents and near 6.25. WU is up 24 cents and near 8.41. KWU is up 22 cents and near 9.11. MWU is up 15 cents and near 9.43.
US stocks are higher. Crude is higher. US Dollar is lower. Gold, silver, copper, coffee, cocoa, sugar and cotton are higher.
Soybean futures are higher. Dalian soybean, soymeal, palmoil and soyoil futures were higher. SX rose for the 5th straight day making their highest intra-day close in 4 weeks The warm and dry weather outlook continues to support soybeans. Soyoil is up 10 cents from recent low following the approval of a new Climate Action bill. The bill extends credits and payments for alternative fuels through 2024 and even 2025, and it creates a new credit for sustainable aviation fuel. US new crop soybean sales total 546 Mbu is at an 8-year high. Matif rapeseed bounced to a 3-week high close following the move in soyoil. Canadian canola also saw sharp gains.
Corn futures are higher. US Midwest 2 weeks weather forecast suggest warm and dry weather across most of the US Midwest. Some feel US corn crop could be far enough along to keep the crop from losing large amount of bushels but could take the top off US yield vs USDA 177. Fact the US and World supplies are already tight though could support higher futures. Most end users have been buying hand to mouth and may need to consider adding coverage. Still a lower US and EU crop could suggest lower futures price action from fall harvest lows into early 2023. US corn export sales pace lag some expectations. Matif new crop futures made its highest intra day close since June.
Wheat futures extended their gains yesterday and are higher again on the overnight session. Fresh news was limited with export sales in line with last year. US Spring wheat crop tour produced the highest ND yield since 2015. The market seems to be increasingly accepting that there is going to be no major or rapid improvement to Black Sea export prospects, even though the first vessels are expected to leave Ukraine today. Matif wheat closed higher. EU is still the only origin that can readily price wheat in the deferred positions. But the market is waiting on developments in the Black Sea on both the Ukraine export corridor and Russian quality. Ukraine shipments continue to be the subject of conflicting information.
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