Palmoil Follows Soyoil Higher

MORNING OUTLOOK

Grains are mixed. SF is up 7 cents and near 14.61. SMF is near 409.9. BOF is near 73.20. CH is down 1 cent and near 6.70. WH is up 4 cents and near 7.85. KWH is unch and near 8.95. MWH is up 3 cents and near 9.43.

China bought 10-15 Brazil cargoes. Weekly US soybean exports were down 10 pct from last year. Window for new US soybean exports is closing. Brazil record crop and lower China demand could help offset lower Argentina crop. Crude oil is higher on talk of OPEC cuts. Soyoil following Crude. Dalian palmoil higher following CBOT soyoil and near 2 week high. Argentina new soya policy should increase farmer selling but so far, farmer is a reluctant seller due to the dry weather.

US corn exports are down 33 pct from last year. Brazil Nov corn exports high at 5 mmt with 5 mmt in line up. Some est EU corn imports at 23 mmt vs USDA 20 and this could be low. Talk is that Ukraine is exporting wet corn to EU due to high drying cost. Ukraine export corn price is near $255-$275 vs $343 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. RR could halt hazardous material shipments 4 days prior to deadline. Union asking for higher pay and better working conditions.

Chicago wheat futures is near August lows. Lack of new export demand and lower Russia export prices weighed on wheat futures. SRW export price has narrowed vs French but US HRW is still a premium to Germany. Argentina harvest is near 13 pct vs 32 average. Farmer holding sales due to lower crop est and dry weather. Australia wheat futures are lower on better west yields and not as bad quality as feared in east. Iran still having problem securing letter of credits. Russia and Ukraine export slowed due to weather. There is also large delays in Turkey inspections. USDA weekly crop progress report was delayed until today.

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

US stocks are higher. US Dollar is lower. Crude is higher. Gold, silver, copper, coffee, cocoa and cotton are higher. China increased police presence vs protests.

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