Year End, Month End. Grains Mixed.

MORNING OUTLOOK

Year end, quarter end, month end. Grains are mixed. SH is up 11 cents and near 15.28. SMH is near 462.5. BOH is near 66.10. CH is unch and near 6.79. WH is down 1 cent and near 7.72. KWH is down 1 cent and near 8.65. MWH is unch and near 9.14. US stocks are lower. Crude is lower. Gold and silver are lower. Copper, coffee, cocoa and cotton are higher.

Soybean futures are higher. Dalian soybean, soymeal and soyoil futures ended higher. This despite lower hog and pork prices. Soymeal futures new contract highs. Matif rapeseed futures at 5 week highs. Weekly US export sales are est at 500-900 mt. Trade will be watching to see if sales continue to slow. Brazil fob soybean prices lower than US Feb forward. Argentina and S Brazil weather remains dry. Some rain in NE Argentina. Rest of Brazil weather is normal. Trade still talking about record Brazil soybean crop but lower Argentina. Some are lowering Argentina acres with crop rated only 8 pct G/E. Argentina weather looks to be dry into mid Jan which is concerning.  SH 2022 high was 15.72 and low was 12.99.

Dry Argentina and S Brazil weather has triggered new speculative buying above key resistance. Dalian corn prices ended near 4 week high. Increase US and Brazil farmer offered important resistance. Talk of declining South America corn export supplies could be supportive to new US corn export demand and prices. Argentina corn export prices are higher with Argentina uncompetitive until May. Crude is lower on profit taking. US export sales are est near 600-900 mt. Trade will be watching for signs of increase demand for US corn. Weekly US ethanol data was bearish. Production was down 6 pct from last week and 9 pct from last year. Stocks rose 2 pct from last week and are up 19 pct from last year. CH 2022 high was 7.68 and low was 5.68.

Wheat futures are sharply unchanged. Wheat futures dropped on Thursday on talk of a pick-up in Russia wheat export pace due to better weather. US Midwest and Delta could see rains and warmer temps. US south plains remain dry. N Africa is turning dry. EU and Black Sea weather is mostly favorable. Weekly US wheat export sales are est at 200-500 mt. 91 pct of Argentina wheat crop is harvested with crop rated only 8 pct G/E. Some feel final crop could be below USDA est of 12.5 and 22.1 last year. WH 2022 high was 12.73 and low was 7.23.

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