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Grains Mixed With Beans Slightly Higher

MORNING OUTLOOK

Grains are mixed. SF is up 1 cent and near 13.82. SMZ is near 409.2. BOZ is near 71.70. CZ is down 2 cents and near 6.79. WZ is down 7 cents and near 8.31. KWZ is down 9 cents and near 9.28. MWZ is down 8 cents and near 9.49.

Soybean futures are slightly higher. There is some talk that central Brazil may be turning dry. Argentina is still dry. Jan soybean board crush margins are near record high. Cash is even higher. This supports soybean futures. China Sep soybean imports were 7.72 mmt. Oct-Sep total 91.6 mmt vs USDA 90.0. Jan-Sep is 69.0 mmt which is down 7 pct from last year. US soybean exports are down 12 pct vs ly. US harvest is 80 pct and up 13 from last week. Poor US river logistics offers resistance to futures. Dalian soybean, soymeal and soyoil prices were lower. Palmoil continues to trade higher and is up $200 since early Sep.

Corn futures are lower. US domestic corn demand is strong with nearby corn supplies down 1.0 bil bu from ly. US corn exports are down 21 pct. US harvest is 61 pct. Brazil export prices are lower and the spread between cheaper Brazil vs US suggest Brazil corn could be imported into US. There are no Ukraine export price due to talk that Russia may not extend Ukraine export corridor deal. China Yuan making 15 year low. Investors continue to exit China equity market.

Wheat futures are lower. USDA estimated that 79 pct of US winter wheat is planted. KS 76, IN 65. WA 95. OK could see rains but most of US HRW crop areas are dry. US subsoil are 68 pct short/very short vs 35 ly. Subsoil 66 pct short/very short vs 42 ly. US wheat exports are 348 mil bu vs 350 ly. Some concern about 2023 global wheat supply is supportive. Russia wheat export prices are lowest and offers resistance. Status of Ukraine export corridor is key with managed funds are short Chicago wheat futures.

US Dollar is mixed. US stocks, Crude, gold, silver, copper, cocoa and sugar are lower. Coffee is higher.

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