Written Commentary
OPENING COMMENTS
Ag Fundamentals:
Exports sales out this morning were mostly within trade estimate ranges. Soybean oil reported a hot 19.4K MT sales for this marketing year. Wheat, corn and beans all reported near the high end of the trade estimates with wheat doubling the high end expectations of the 25/26 marketing year sales. Export sales continue to be a strong bullish argument for corn. China has been mostly absent in our corn export program and we are still out performing expectations. Attention will focus in on how efficient Brazil plants their 2nd corn crop, where the USDA ends up moving corn demand to in next month’s WASDE, and how high the market takes corn acre estimates at the end of March. Weather over the next 2 months in the US will also be important when observing how the amount of rain the US receives could shift planting intentions. $5 has over 21K contract of open interest today in March corn futures. The dollar has moved lower from over 109.0 to near 106.5 on the index since the beginning of the year. Crude oil is down this morning and looks like it wants settle in near 71.5 nearby heading into the weekend. The EIA report was mostly neutral for crude yesterday with stocks up 3.5 million barrels, slightly above expectations. Crude oil stocks are about 25 million barrels below the 5-year average today. Gasoline stocks were also higher than expected, but diesel stocks were reported about -2.7 million barrels less than expected.
WEEKLY EXPORT SALES
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EXPORT & WORLD NEWS
Taiwan purchased around 102K MT of milling wheat from the US yesterday. Japan also bought 96K MT of food-quality wheat from the US, Canada, and Australia.
Malaysian palm oil futures were up 22 ringgit overnight, at 4664.
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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