Grains Lower as OI Drops
MORNING AG OUTLOOK
Grains are lower. SH is down 7 cents and near 13.17. SMH is near 394.8. BOH is near 48.63. CH is down 1 cents and near 4.78. WH is down 6 cents and near 6.29. KWH is down 5 cents and near 6.37. MWH is down 4 cents and near 7.25. S/P is mixed after trading over 4,800. Crude is lower. US Dollar is mixed near new lows. Gold is higher after better China Industrial earnings.
CH is near 4.78. CH may now be in a 4.68-4.80 range. Trade needs spark like higher demand for US export to test resistance. Dry Brazil is expected to gett needed rains favoring the NE. Potential large Argentina 2024 crop could continue to weigh on corn values. One group increased US 2023/24 carryout to 2,290 mil bu vs USDA 2,130 due to higher crop.. Dalian corn futures were higher.
SH is near 13.17. Dry Brazil areas are expected to get needed rains. Potential large Argentina 2024 crop continues to weigh on soymeal values. One group increased US 2023/24 carryout to 262 mil bu vs USDA 245 due to higher crop. Trade is worried that China may be done buying US soybeans for now. Dalian soybeans were sharply higher. Soymeal, palmoil and soyoil prices ended slightly higher.
Push pull wheat futures trade continues. WH has been in a 6.00-6.50 range since September. One group est US 2024 wheat crop at 1,921 mil bu vs 1,812 ly. They also est 2024/25 exports at 825 vs 725 ly. Still all this increased US wheat carryout to 744 mil bu vs 659 this year. World wheat buying is increasing but most of the wheat is being sourced from Russia. Recent China buying US SRW has KWH only +8 over WH.
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