Grain Futures See Higher Open
Grains are higher. SH is up 8 cents and near 15.47. SMH is near 484.4. BOH is near 64.68. CH is up 1 cent and near 6.86. WH is up 5 cents and near 7.57. KWH is up 7 cents and near 8.63. MWH is down 1 cent and near 9.15. US stocks are marginally higher after lower Tuesday due to lower Goldman Sachs earnings. US Dollar is lower. Crude, Gold, silver, copper, coffee, cocoa, sugar and cotton are higher. Goldman suggest commodities will outperform equities in 2023.
Soybean futures are higher. It is raining in Argentina. Money is buying soybean futures as SH is making new highs. Next resistance is 15.72. Futures are overbought. Weekly US exports were higher than expected. Season to date exports are 1,182 vs 1,236 ly. Brazil 2023 crop could be record. Brazil soybean export prices are lower than US. Trade trying to put value on Argentina crop losses. US Dec NOPA crush was below trade est. Sep-Dec US crush lowest in 3 years. Slower crush could be weather related. This could be helping soymeal futures. Implied Dec soyoil use was down 6 pct from Nov.
Corn futures are marginally higher after good gains on Tuesday. CH is highest since early Nov. CH is overbought. US season to date corn exports are near 424 mil bu vs 603 ly or down 30 pct. Commercials still looking for more demand for US corn exports. Ukraine prices though are 100 cents below US. Brazil is looking at a record crop but out of the market until June. Trade trying to put value on lower Argentina crop. It is raining in Argentina today.
Wheat futures are mixed. WH and KWH are following most commodities higher. KC and Chicago gaining on MLS. KC is gaining on Chicago. WH resistance 7.80. Support 7.20. Russia prices still lower than US. Some helpful rain/snow is forecasted for CO, NE and E KS. Rains are helping US SRW soils. Wheat up to money flow. More a follower. World demand is slowing on lower economic growth forecast.
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