Daily Commentary
4/23/24
Wheat futures are more subdued this morning from the higher trade seen on Monday. CHI is up a fraction, KC is up 5, and MN is up 5. Row crops are seeing minor strength with Corn up a fraction, and Beans up 3. Canola futures up a couple, while Paris wheat futures are down 3-4 Euros.
The U.S. Dollar is lower, Wall Street is higher, Crude is higher, and Gold is lower.
Wheat futures were seeing funds on the buying side ahead of yesterday's crop progress report. Leading into yesterday funds were buying energy & gold while selling wheat. They decided to unwind some of that position and that was the main driver for the higher board Monday.
Trade sources are reporting that four companies gave Jordan offers for 120,000 mt of feed wheat with no purchase yet confirmed. Taiwan is in this week for 106,675 mt of U.S. wheat for June/July shipment. MARS is now estimating European wheat yields at 5.93 mt/ha versus 5.91 mt/ha last month.
The weekly crop progress report showed deterioration to the winter wheat crop in the Southern Plains. Overall G/E ratings were down 5% from last week and now stand at 50%. KS saw a decrease of 7%, while OK was down 11%. WA ratings were up 3% from last week at 48%. Spring wheat planting progress was up 8% from last week at 15%. WA is estimated to be 60% planted at this point. Corn planting progress is up 10% versus the 5-year average at 12% overall. Soybean planting is 3% ahead of the 5-year average at 8% complete.
Local cash markets were able to find support from the 20¢ gain on the futures board yesterday. Liquidity picked up with the bump up in values as farmers and landlords hit the sell button. Exporters also reported that their buying pace picked up from prior weeks, but it did not sound like there was enough being bought to crash the market. The futures board will be watched closely for any signs of regression during the morning session, and expected to affect bids.
Corn futures are staying steady so far this morning. Reports of leafhopper attacks on the corn crop in Argentina are helping to limit the downside potential at the moment.
The soybean complex is seeing spillover support from the palm oil complex today. Iran is seeking 60,000 mt of soybean meal out of South America this week.
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