Written Commentary
MORNING AG OUTLOOK
Grains are lower. SN is near 15.19. SU is down 6 cents and near 13.55. SX is near 13.31. SMU is near 398.4. BOU is near 60.62. CN is near 5.63. CU is down 4 cents and near 4.94. CZ is near 5.01. WU is down 11 cents and near 6.46. KWU is down 20 cents and near 8.23. MWU is down 11 cents and near 8.46. US stocks are lower. US Dollar is lower. Crude is unch and near $71.84. Gold, copper, coffee, sugar and cotton are higher. Silver and cocoa are lower. In the grain room, up days are supply concern especially US, Canada and Russia. Down days are demand concerns especially China and US exports.
Soybean futures are lower before weekly US export sales data and the weekend. Unexpected increase in US jobs jolted the US stocks market and many commodities. Some feel US Fed may have to increase rates to slow inflation. Globally, higher rates could also slow economies and commodity demand. Weekly US old crop soybean export sales are estimated at 100-350 mt vs 227 last week, new crop 0-400 vs 17 last week. Old crop soymeal sales are est at 50-200 mt vs 105 last week, new crop 0-200 vs 68 last week. USDA July report will help clarify their outlook on US and World supply and demand. US weather outlook calls for normal weather across central and south US but below rains north.
Corn futures are lower before weekly US export sales data and the weekend. Weekly US old crop corn export sales are estimated at 0-500 mt vs 140 last week, new crop 0-500 vs 123 last week. Brazil corn export prices are lower than US and export loadings are increasing. USDA July report will help clarify their outlook on US and World supply and demand. US weather outlook calls for normal weather across central and south US but below rains north. Weekly US ethanol production was up from last week and last year. Stocks were down from last week and last year. Margins jumped on lower corn prices and higher energy prices.
Wheat futures are lower led by KC and before weekly US export sales data. Weekly US wheat export sales are estimated 50-350 vs 155 last week. Russia wheat export prices are lower than US. Recent concern about Russia crop helps support wheat futures while slow demand for US exports offers resistance. USDA July report will help clarify their outlook on US and World supply and demand. US weather outlook calls for normal weather across central and south US but below rains north. This has raised concern about US and Canada HRS crops.
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