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Grains Mixed on US Harvest Pressure

MORNING OUTLOOK

Grains are mixed. SX is down 3 cents near 13.80. SMZ is near 410.0. BOZ is near 65.65. CZ is down 1 cent and near 6.88. WZ is up 11 cents and near 8.70. KWZ is up 8  cents and near 9.60. MWZ is up 10 cents and near 9.64.

Soybeans futures are lower. Weak technical signals and talk of higher World supply offers seasonal resistance. Brazil weather is improving. China bought US soybean last week, Will they buy more? IHS Markit estimates US soybean exports at 1,980 mil bu vs USDA 2,045. Global inflation will force Central Banks to raise rates which could slow economies and reduce food and fuel demand.

Corn futures are lower. Lower close on Friday paints a negative tech picture. US harvest pressure and slow demand for US corn exports offers resistance. Trade will be watching Ukraine exports and if Russia extended or stops Ukraine export deal. IHS Markit US corn exports closer to 2,000 mil bu and carryout closer to 1,213. There is more talk of record 2023 Brazil corn crop.

Wheat futures are higher.  On again and off again talk if Russia will extend or stop Ukraine export deal adds to Wheat futures volatility. US south plains and Argentina dryness offers support. USDA lowered US wheat export forecast to lowest level in 50 years. Russia export prices are lowest origin. IHS Markit continues to estimate US wheat carryout at 576 mil bu. Tight US HRW and SRW wheat supplies is offset by lack of demand for US exports and slower US food demand.

US stocks are higher. Crude is unch. US Dollar is lower. Gold, silver, copper, coffee, cocoa, and cotton are higher.

President Xi pledged to build a modern socialist China by 2049.

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