Grains Higher Ahead of USDA Fri
Grains are higher. SX is up 9 cents and near 14.18. SMZ is near 413.5. BOZ is near 62.79. CZ is up 4 cents and near 6.75. WZ is up 4 cents and near 9.08. KWZ is up 5 cents and near 9.81. MWZ is up 3 cents and near 9.75.
Soybean futures held 14.00 support. There is resistance from 14.19 to 14.27 to 14.33 to 14.44. Weekly US soybean export sales are estimated near 300-850 mt vs 446 last week. Trade continues to be worried about lower China demand and higher 2023 South America crops. China Yuan is at 14 year low. SMZ tested 410. BOZ tested 60.75 on continued lower palmoil prices. Soybean board crush is lowest level since early August. Friday is month end, quarter end and USDA stocks report. Formula for volatility.
Corn futures are higher. Some buying linked to higher Crude but weekly ethanol production dropped 6 pct. Cash markets are mixed. Farmer is not selling but low river water levels could weigh on basis. Weekly US corn export sales are estimated near 250-800 mt vs only 182 last week. Slow exports and approaching US harvest offered resistance. Ukraine war and concern about futures corn exports offers support. Friday is month end, quarter end and USDA stocks report. Formula for volatility. Matif corn is higher on low supplies.
Wheat futures rallied on Wednesday on concern over Black Sea exports. Russia “land grab” of Ukraine territory could increase sanctions against Russia. There remains concern about securing freight and insurance for Russia grain vessels. US south plains remains dry. Matif wheat futures rallied to 3 month highs on supplies concerns. WZ is back near recent high with resistance near 9.17 and 9.28.
US Dollar is higher. US stocks, gold, silver, coffee, sugar and cotton are lower. Crude, copper, coffee and coffee are higher.
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