Written Commentary
Global Ag News for June 8.23
June 8, 2023
Grains Lower on Ukraine Corridor News
- November 17, 2022
- Steve Freed
- Follow us on Twitter @TradeADMIS
MORNING OUTLOOK
Grains are lower. SF is down 10 cents and near 14.19. SMF is near 402.9. BOF is near 71.02. CH is down 9 cents and near 6.57. WH is down 15 cents and near 8.21. KWH is down 4 cents and near 9.41. MWH is down 6 cents and near 9.67. US stocks are lower. US Dollar is higher. Crude, gold, silver, coffee, cocoa, sugar and cotton are lower.
Wheat and corn futures are lower after Ukraine President said that the export corridor deal will be extended 120 days. Matif wheat futures made new 12 week lows on talk that cheap Russia wheat will sell most of the World wheat. Some still feel Russia wheat crop may be closer to 100.0 mmt vs USDA 91.0. Today’s weather maps are not as cold across Russia and added precipitation. Argentina remains dry with some now est wheat crop near 10.0 mmt vs USDA 15.5 and 22.1 ly. US south plains remains dry with La Nina now forecasted to last into January. Weekly US export sales are est at 250-500 mt vs 322 last week. Weekly US export sales are est at 700-1,400 mt vs 265 last week.
March corn is back test 100 DMA near 6.56. Trade/close below support could suggest a test of 6.40. Dec23 could test this week’s lower near 6.03. Ukraine President said that the export corridor deal will be extended 120 days. Matif corn futures made new 12 week lows on talk that cheap Ukraine corn could be imported into EU. EU farmers increased cash corn sales on the news. Weekly US ethanol production and stocks were down 4 pct from last. Stocks are up 6 pct versus last year. US Midwest and Miss River arears will remain dry adding to barge logistic problems. Weekly US export sales are est at 700-1,400 mt vs 265 last week.
Jan soybeans are lower and below 14.22 support. BOF is near 71.00 and down from recent highs near 75.94. Palmoil futures has dropped 11 pct this week and is near 1 month low Argentina CPI was 6.3 pct. Argentina soyoil works into US and there are rumors of new sales into US. Weekly US export sales are est at 900-1,700 mt vs 795 last week. S Brazil and S Argentina are turning dry. La Nina now forecasted to last into January.
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