Grains Are Lower Starting Off


Grains are lower. SX is down 13 cents and near 13.82. SMZ is near 415.7. BOZ is near 70.76. CZ is down 5 cents and near 6.79. WZ is down 7 cents and near 8.43. KWZ is down 6 cents and near 9.42. MWZ is down 7 cents and near 9.54.

Soybean futures are lower. Demand worries due to global recession weighs on soybean futures. Brazil plantings are 25 pct complete. Improved rain is expected next week in the center-north regions. Matif rapeseed ended lower. Canadian canola hit an 18-week high. Asian markets ended lower. China demand is in question. SX is narrow range with strong crush margins offset by favorable 2023 Brazil soybean outlook.

CZ is lower as export sales remain only 52 pct vs ly. S American and Black Sea export prices remain below US.  Dalian hit a 4-month high weekly close with feed margins good and corn alternatives limited. Matif ended lower. Estimates of the EU crop continue to slide towards 50 mmt. Black Sea values became ill-defined as fears of an end to the corridor again increased. The export corridor will dictate prices near term, S American weather and US exports will be the longer term driver. CZ continues in a 6.60-7.00 range.

US wheat ended lower despite expanding drought in the US Plains, further downgrades to Argentine crop prospects, no sign of any let-up to the rain in Australia and renewed doubts over the Black Sea export corridor. Argentine crop ratings hit new lows with production lowered to 15 mmt. Australia futures hit a new weekly high close as persistent rain brought more logistics, quality and yield problems. Matif was the market’s worst performer this week amidst mixed corridor reports and falling Russian values. Outlook long-term world wheat crop prospects are increasingly questionable but the export corridor and currencies which will keep near term markets volatile.

US Dollar is higher. US stocks, Crude, gold, copper and sugar are lower. Silver, coffee and cocoa are higher.

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