Grains & Most Commodities Are Higher

MORNING OUTLOOK

Grains are higher. SF is up 12 cents and near 14.71. SMF is near 412.0. BOF is near 73.38. CH is up 2 cents and near 6.72. WH is up 6 cents and near 7.88. KWH is up 6 cents and near 8.93. MWH is up 2 cents and near 9.36.

Argentina is dry. Brazil weather is favorable except S Brazil is dry. Cold weather is expected in Russia and Ukraine. EU is dry with colder temps next week. US rains in PNW, Delta and SE. US south plains is dry.  US Midwest is cold.

There were no soymeal or KC wheat deliveries. 398 corn, 500 soyoil and 1,236 Chicago wheat.

SF is near 10 week highs. China bought 5 Argentina soybean cargoes. China soybean import coverage is estimated near 95 pct for Dec and 40 pct Jan. Window for new US soybean exports is closing. Crude oil is higher on talk of OPEC cuts. Soyoil following Crude. Dalian palmoil higher following CBOT soyoil. Argentina new soya policy has not yet increased farmer selling.  Farmer is a reluctant seller due to the dry weather. Brazil is lifting roadblocks.

US corn exports are down 33 pct from last year. Brazil Nov corn exports high at 5 mmt with 5 mmt in line up. Ukraine export corn price is near $265 vs $316 US. Biden administration is asking Congress to avert US RR strike. 30 pct of US cargo by weight is shipped by rail. Strike could lose $2 billion GDP daily. Could also impact 7 million travelers per day. Dec 9 is deadline. CH is near the upper ended of the recent 6.53-6.77 range. Hope that China might slowly relax strict Covid policy is helping commodities.

SRW export price has narrowed vs French but US HRW is still a premium to Germany. Argentina what supplies are lower due to dry weather. Australia wheat futures are lower on better west yields and not as bad quality as feared in east. Turkey bought Russia wheat at lower than expected prices. USDA estimated US winter wheat crop 34 pct G/E up 2 from last week. KS is 21, OK 31, TX 21, NE 20, AR 64, WA 64.

US stocks are higher. US Dollar is lower. Crude is higher. Gold, silver, copper, coffee, sugar and cotton are higher. There is hope that China will slowly relax Covid prevention rules. Traders are wondering if US Fed increasing rates 50 basis points is hawkish or dovish.

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