Friday, May 17, 2024
Morning Markets: Corn: +1 old & new. Beans: +12 old & +8 new. Wheat: +4.
MARKET SUMMARY:
Markets are adding weather premium to end the week, with wheat and soybeans the two upside leaders to start the last day of the week. Continued concern over less-than-ideal weather in Russian wheat areas, as well as too much rain in the Eastern Corn Belt, has kept a floor under prices for most of this week. As has been the case of late, traders in the ag markets will have their attention on today's Commitment of Traders report, which is expected to show more short covering occurred in the last week. Products are also green, soybean meal is up $2-3/ton, and soybean oil is up 20-30 points. Outside markets are mostly higher as well; crude oil is trading 10-20 cents/bbl lower, the Dow Jones index is up 20 points, and the US$ index is up 30 points.
Crude Oil is down $0.12 at $79.11.
U.S. Dollar is +0.3% at $104.764.
Global Equities: Japan +0.3%, China +0.9%, and Europe -0.4%.
Dow futures is -2 points at 40,008.
EU MATIF Exchange: Corn +0.1%, and Wheat +1.6%.
WEATHER:
Southwest Kansas and eastern Colorado still need rain. Some light rain fell over the Midwest again yesterday. It looks dry and warm now until Monday evening. A couple of rain chances are possible next week, with the heaviest totals across the northern tier. Some planting activity will get done this weekend with temps warming into the 80s.
OTHER HEADLINES:
Germany's winter wheat area for the 2024 harvest has been reduced by 8.3% year on year to about 2.6 million hectares, Germany’s national statistics agency estimated on Friday. Winter rapeseed sowing for the 2024 crop was also reduced, dropping by 5.8% to 1.1 million hectares, the agency said. Reductions in planted areas had been expected after unfavorably rainy autumn weather and increased use of farmland for purposes including housebuilding and expansion of renewable energy infrastructure.
Ukrainian farmers had sown 5.1 million hectares of spring grain crops as of May 10, the agriculture ministry said on Friday. Together with 6.3 million hectares of sowed oilseeds, over 11 million hectares have now been sown, which comprises over 90% of the planned sowing area. The area included 781,600 hectares of spring barley, 249,000 hectares of spring wheat and 3.57 million hectares of corn.
Scouts on an annual tour of Kansas wheat fields projected better-than-average yields in the top U.S. winter wheat state, reflecting improved moisture after several years of drought. U.S. production carries increased significance as poor weather threatens crops in Russia, the world's biggest wheat exporter, lifting K.C. hard red winter wheat futures KWv1 to their highest in nearly eight months this week. The tour estimated Kansas wheat's yield potential at 46.5 bushels per acre (bpa) after scouting 449 fields over three days. The figure is the highest since 2021 and falls above the five-year tour average of 42.4 bpa from 2018-2023. No tour was held in 2020 due to the coronavirus pandemic.
Argentina's government on Thursday pegged the planting area for the upcoming 2024/25 wheat crop at 6.15 million hectares, above the 5.9 million hectares planted in the previous cycle.
The Korea Feed Association (KFA) is believed to have rejected all offers and made no purchase in a tender on Friday to buy up to 69,000 metric tons of animal feed corn sourced from South America or South Africa only, European traders said. Prices offered were regarded as too high, traders said.
The harvesting of grains such as soy, corn and rice in Brazil's flood-devastated Rio Grande do Sul advanced slowly in the last week as relentless rains and stubbornly high waters fail to subside, disrupting work. According to state crop agency Emater on Thursday, soybean harvesting in the country's second-largest producing state reached 85% of the area, up from 78% last week, even as weather conditions remained unfavorable and severely damaged crops. "There was a sharp reduction in grain quality in comparison to the product obtained before the excess rain," Emater said, referring to soybeans.
The United States blocked imports from 26 Chinese cotton traders or warehouse facilities on Thursday as part of its effort to eliminate goods made with the forced labor of Uyghur minorities from the U.S. supply chain. The companies are the latest additions to the Uyghur Forced Labor Prevention Act Entity List that restricts the import of goods tied to what the U.S. government has characterized as an ongoing genocide of minorities in China's Xinjiang region. U.S. officials believe Chinese authorities have established labor camps for Uyghurs and other Muslim minority groups in China's western Xinjiang region. Beijing denies any abuses.
EXPORT NEWS:
N/A
Have a wonderful day!!!!
Chelsey White
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
Phone:: 217-794-2240
E-Mail:: cwhite@tfgrain.com
Web:: www.topflightgrain.com
This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.
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