Daily Commentary
3/28/24
Wheat futures are mixed ahead of this morning's USDA reports. CHI is up 4, KC is up 2, and MN is down fractionally. Row crops are also seeing mixed trading with Corn up 2, and Beans down 7. May Canola futures are lower by 1. Paris wheat futures are up by half a Euro. The U.S. Dollar is higher, Wall Street is higher, Crude is higher, and Gold is higher.
The USDA reports will be out at 9 a.m. as we get ready to close out the week today due to Good Friday tomorrow. There will be no markets this afternoon and will remain closed tomorrow.
The weekly export sales report was out earlier this morning. Wheat sales were better than trade estimates with 339,600 mt for 23/24, and 212,800 mt for 24/25. White wheat sales finally saw some demand with 127,400 mt sold for 23/24, and 213,700 mt for 24/25. South Korea was the featured buyer with 68,900 mt for 23/24, and 195,000 mt for 24/25. This was most likely a feed wheat sale that was booked when we saw the marketing year low earlier this month. HRW sales were reported at 127,800 mt all for 23/24, with Mexico picking up the biggest chunk at 50,900 mt. Unknown cancelled 16,000 mt. HRS sales were at 77,100 mt for 23/24, and 53,700 mt for 24/25. Taiwan was the biggest purchaser with 61,800 mt bought in the old crop timeslot. Corn sales were near the upper end of trade guesses with 1,206,500 mt for 23/24, and 126,400 mt for 24/25. Soyabeans were closer to the low end of trade estimates with 263,900 for 23/24, and 120,000 mt for 24/25.
Saudi Arabia announced a tender for 595,000 mt of wheat for June/July delivery. The EU Commission is estimating 24/25 wheat production at 120.8 mmt versus 125.6 mmt seen in 23/24. The drop in production is due to lower planted acreage across the EU. Poland and Ukraine are set to meet today and discuss the tensions over Ukrainian agricultural exports that have sparked protests from Polish farmers.
Local cash markets were sideways through Wednesday's trading sessions. Exporters kept bids in check with little demand being reported. Exporters did note some smaller quantities of white wheat were booked by Thailand and the Philippines, but were less than the amount of red wheats that were bought. There were reports of "tire kickers" checking on values, but they have not decided to make a purchase yet. The post report board action could dictate local values this morning.
Corn is getting a little boost from the export sales report ahead of the report. The trading range remains narrow with only 3 1/2¢ between the high and low overnight into this morning. Traders will be looking at the USDA estimated planted acreage to find some direction for corn as planting gets going in the coming weeks. Traders are expecting to see the agency post 91.776 million acres. South Korea was able to buy 126,000 mt of optional origin corn for first half July delivery. Soybeans are under pressure from weaker export sales. World bean buyers have been sourcing product out of Brazil. Traders are looking for an increase in planted acreage from last year with the average trade estimate is at 86.53 million acres.
Get signed up to receive the daily commentary via email. Call your local office today to get on the list!
**********
***HLGG OFFICES AND MARKETS WILL BE CLOSED MARCH 29TH FOR GOOD FRIDAY***
MARKETS
MORNING FROM 9:30 - 11:10 A.M.
AFTERNOON FROM 2:30 - 4:30 P.M.
NO AFTERNOON MARKET ON FRIDAY
NON-HARVEST OFFICE HOURS
MON-THURS 7:30 a.m. - 5:00 p.m.
FRI 7:30 a.m. - 11:30 a.m.
CURRENT PROTEIN SCALES
DNS: +.04/-.08 PER 1/4% BASIS 14%
HRW: +.05/-.10 PER 1/2% BASIS 11.5%