Soybeans Sold Off on Friday
MORNING AG OUTLOOK
Grains are mixed. SF is up 7 cents and near 13.11. SMF is near 407.4. BOF is near 50.46. CH is unch and near 4.85. WH is down 8 cents and near 6.23. KWH is down 7 cents and near 6.54. MWH is down 3 cents and near 7.25. US stocks are mixed. US Dollar is higher. Crude is lower. Metals are lower in front of US Central Bank meeting.
Corn futures have been sideways since Dec 1. CH is in a 4.80-4.90 range. USDA raised US corn exports on Friday. Some could see exports up 75 mil bu. US is competitive with Brazil export prices near 6.40. Rallies above 5.00-5.10 could find famer selling. Some could see US Dec 1 corn stocks 1.0-1.2 bil above last year. There is talk that China may be asking for US corn export prices. N/E Brazil weather forecast is drier.
Soybeans sold off Friday after USDA report. Argentina new President was sworn in. Some new policy announcements could be on Tuesday. Some feel SF is supported near 13.00 due too higher US soybean crush and less than ideal Brazil weather. Some could also see US 2023/24 soybean carryout to drop to closer to 215 and offers little room for new export demand. Same group est Brazil crop closer to 155 mmt vs USDA 161. Crop may need to drop below 150 before SF can trade closer and over 14.00. SF resistance is near 13.19 then 13.25. ‘
Wheat futures are lower. China has bought 41 mil bu of US SRW. This tightens US SRW supply. There is talk that China may be asking for more US wheat. There is also talk of lower US 2024 winter wheat acres. Wheat futures will need more supply concerns and increase US demand to push higher with technical signals now correcting an overbought tech picture.
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