Corn Crop Yields Are Variable
MORNING AG OUTLOOK
Grains are higher. SX is up 7 cents and near 13.10. SMZ is near 395.4. BOZ is near 48.17. CZ is up 2 cents and near 4.82. WZ is up 1 cent and near 5.90. KWZ is up 1 cent and near 7.12. MWZ is unch and near 7.67. US Dollar is higher. Crude is higher. US stocks are higher There is still concern over China property market.
Soybean futures are higher. Dalian soybean, soymeal, palmoil and soyoil were higher. Dry weather in South America is offering support to soybean before Friday USDA report. There is increase chance for central Brazil showers the second week. Argentina farmers have sold 13.8 mmt of soybeans to date or 66 pct of 21 mmt crop. Ly sales at this time were 28.7 mmt. Trade looks for a 2022/23 carryout near 242 vs USDA Sep 277. Board crush margins have dropped to new quarterly lows. SX back above 13.00. Next resistance is 13.27.
Corn futures are slightly higher. US Midwest should be dry and should help harvest. Yields are variable. Brazil is dry but rains are forecasted the 2nd week. US farmer remains slow seller of corn with ethanol margins positive. Trade estimates US 2022/23 corn carryout near 1,429 mil bu vs 1,377 ly. US corn export outlook remains low due to higher SA exports and US river navigations problems. Brazil farmer increased corn sales due to forecast of rain. East Canada corn yields could be record.
Wheat futures are mixed. Australia remains dry. It remains warm and dry across S Russia and Ukraine wheat crops area. US south plains is dry. Higher Russia export supplies and lower prices limit upside in futures. Tunisia appears to have bought Russia wheat near $234 vs Russia $270 floor Trade est wheat stocks near 1.77 bil bu vs 1.78 ly. Trade also est US wheat crop at 1.73 bil bu.
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