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Commodities Watching Virus Impact on Demand

MORNING OUTLOOK

Grains are mixed. SX is down 3 cents and near 13.59. SMZ is near 362.1. BOZ is near 61.58. CZ is up 3 cents and near 5.67. WZ is up 3 cents and near 7.52. KWZ is up 2 cents and near 7.31. MWZ is up 6 cents and near 9.14.

US stocks are mixed. US Dollar Is lower. Crude is higher. Financial markets waiting for US Fed minutes. Commodities watching virus impact on demand.

For the month to date wheat prices are up 29 3/4 in SRW, up 39 in HRW, up 16 1/2 in HRS; Corn is up 18 1/2; Soybeans up 6 3/4; Soymeal up $7.60; Soyoil down 1.59.

Next week, US Midwest will turn cooler/wetter. Russia dry. Brazil dry. Argentina dry. EU wet. Dalian soybean futures higher. Corn, soymeal, palmoil and soyoil lower. China soybean buying slow.

Pro Farmer est IN corn yield at 193 vs USDA 194 and 187 ly. NE 182 vs USDA 186 and 181 ly. Pro Farmer est IN soybean pod count 1,226 vs 1,297 ly. NE 1,239 vs 1,2,81 ly.

China zero Covid tolerance at ports slow unloads add to congestion. Record ocean freight slow demand.

China feed and crush margins remain negative which is slowing amount of soybean import buying. China demand for US corn low. US prices competitive to buyers. Looming US harvest negative.

Brazil farmer not selling corn.  North corn planting starting in dry weather.

Wheat futures lower. EU lower after rally linked to option expirations. Russia dry. CBT futures higher

Weekly US ethanol production should be near last week. Stocks a little higher.

Covid cases raising concern about food demand. Weekly US corn/wheat sales low. Soybean 1.0 mmt. SX support 13.50. Resistance 13.65. CZ support 5.56. Resistance 5.70. WZ support 7.20. Resistance 7.60

On Tuesday, Managed funds were net sellers of 11,000 contracts of SRW Wheat; 6,000 corn, 4,000 soybeans and 2,000 soyoil and bought 1,000 soymeal. We estimate Managed Money net long 28,000 SRW Wheat; long 267,000 Corn; net long 103,000 Soybeans; net long 29,000 lots of Soymeal, and; long 65,000 lots of soyoil.

 

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