Grain Calls Are Sharply Lower
Black Friday. Grain calls are sharply lower. SF is near 12.66 and called down 8-15. SMZ is near 357.6. BOZ is near 60.94. CZ is near 5.79 and called down 6-12. WZ is near 8.36. KWZ is near 8.73. MWZ is near 10.36. Wheats are called down 5-15.
US stocks are sharply lower. US Dollar is lower. Crude is sharply lower. New Covid variant in South Africa is triggering heavy selling in equities, energies and commodities. December grain options expire today.
US Midwest dry. EU and Russia showers. Australia wet. Argentina showers. Brazil weather favorable. Global tensions building between China and US/Germany on Taiwan. Russia and Ukraine war?
Weekly US soybean export sales are est near 900-1,800, corn 750-1,400 and wheat 250-550.
Dalian soymeal, palmoil, soyoil lower. Soybean and corn higher. China and US relations declining. Matif wheat futures ended lower. Russia wheat prices mixed. Black Sea wheat to Mexico.
Trade estimate of US 2021/22 wheat carryout from 570-640 depending upon final exports.
Matif corn new highs. EU imports down 58 pct yoy. Only 2.6 mmt vs 6.3 ly. Stocks declining. Brazil corn exports remain active. Brazil domestic corn prices higher. US ethanol data supportive. Trade estimates US 2021/22 corn carryout near 1,390 mil bu vs USDA 1,493 due to higher demand.
SF found resistance near 13.00. Soybean supported by positive US crush margins. Exports lower. China soybean coverage now through December. Brazil could have new crop soybean in Jan for export. USDA ERS lowered value of US soybean exports 12 pct from August. Equals 100 mil bu.
Argentina threatening meat, corn and wheat export tax. Brazil soybean prices lower. Slow China buying.
Brazil soymeal prices $50 discount to US. Could slow US soymeal export demand. Matif rapeseed futures lower. More EU 2022 acres. Canada canola futures higher. Tight 2021 supply.
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