Turnaround Wednesday? Ags Up
MORNING AG OUTLOOK
Grains are higher. SX is up 10 cents and near 13.15. SMZ is near 383.1. BOZ is near 62.42. CZ is up 3 cents and near 4.79. WZ is up 7 cents and near 6.31. KWZ is up 4 cents and near 7.49. MWZ is up 6 cents and near 8.08. US stocks are higher. US Dollar is lower. Crude is higher. Gold, silver, copper, coffee, cocoa and sugar are higher. Turnaround Wednesday?
Soybean futures are higher. Future may be oversold. US NOPA crush was higher than expected and up 5 pct vs last month and almost 2 pct last year. Soyoil stocks dropped to 1,527 mil lbs despite higher crush. This could underscore increase domestic renewable fuel demand. Board crush margins remain high and soyoil as pct of crush is at 6 month high. A few crop scouts feel IL soybean yield will be below 62. 2 week Midwest forecast is warm and dry. Despite weak China economic data, Dalian soymeal futures continue to trade to new highs. Dalian soyoil and palmoil prices are higher on talk of higher India imports.
Corn futures are higher. A few crop scouts feel IL corn yield will be below 201. 2 week Midwest forecast is warm and dry. Pro Farmer crop tour is next week. Midwest rains and lower exports dropped corn futures to lowest level since Dec, 2020. Dalian corn futures traded sharply lower due to increase worries about China economy and commodity imports. There were increase Russia drone attacks on Ukraine Remi port on Danube. Funds are adding to corn futures short. Some feel they are now attracted to carry from Dec to March and potential gains rolling shorts in the carry. Corn buyers may be waiting for lower lows at harvest to add coverage.
Wheat futures are higher. There were increase Russia drone attacks on Ukraine Remi port on Danube. Funds are adding to wheat futures short. Some feel they are now attracted to carry from Dec to March and potential gains rolling shorts in the carry. US wheat buyers may be covered through the end of year. US SRW export prices are below EU and $13 below Russia. Temps are above normal in US, Canada, China, Russia, Ukraine, India and Argentina.
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