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Grain Markets Mostly Lower

MORNING AG OUTLOOK

Grains are mostly lower. SN is down 7 cents and near 13.17. SMN is near 400.0. BON is near 48.11. CN is unch and near 5.86. WN is down 2 cents and near 6.04. KWN is down 5 cents and near 8.07. MWN is down 2 cents and near 7.97. US stocks are higher. US Dollar is higher. Crude is lower and near $73.42. Commodity market challenged with uncertain US and Russia weather, slow China economy, Russia geo-political issues, Ukraine war and higher US Dollar.

SN remains in a 13.04-13.40 range. 13.00 is key support. 400 is also key SMN support. US Midwest drier forecast should offer support. Large Brazil soybean supplies, slower China soybean import demand for US soybeans, global poultry and pork diseases, and increase in alternative oilseed meals is weighing on soymeal futures. Argentina soybean harvest is near 78 percent done. Crop still near 22 mmt. Weekly old crop US soybean export sales are est near -50 to 300 mt vs 17 last week and 100-675 mt new crop vs 664 last week.

CN remains in a 5.60-6.00 range and between 20 day moving average support near 5.81 and 50 day moving average resistance near 6.06. Open interest continues to increase. US Midwest drier forecast should offer support. Managed funds have covered 15,000-20,000 corn shorts this week. Weekly US ethanol productions was down 3 pct vs last year. Stocks were down 5 pct from last week and 7 pct last year. Margins remain positive. Weekly old crop US corn export sales are est near -500 to 400 mt vs -339 last week and 0-300 mt new crop vs 74 last week.

Wheat futures are lower. Choppy wheat trade continues and hard to trade for both bulls and bears. No new word on Ukraine export corridor. Rains are helping Argentina wheat. Australia wheat futures are higher with AUD down to 7 month lows. Some feel improving ND and Canada prairies offers resistance to MWN. WN and KWN are testing 6.00 and 8.00 support respectfully. MWN is now below 8.00. Baltic freight is near 3 month lows. Weekly old crop US wheat export sales are est near -75 to 100 mt vs -42 last week and 200-500 mt new crop vs 336 last week.

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