West Central Ag Grain Comments 07/13/23 4:53:19 PM
Good morning. Corn and soybean futures have rebounded from yesterday’s steep losses and are trading higher this morning while wheat is little changed. The Dollar Index is down 0.53 at 99.84 and is trading at its lowest level in over a year. The weakness in the Dollar will likely boost U.S. exports somewhat should the lower trend persist the remainder of 2023. The August WTI crude oil contract is down 13 cents at $75.62. Conab released its July report a few minutes ago, pegging 22/23 Brazilian soybean production at 154.6 MMTs, down 1.1 MMT from a month ago and corn at 127.8 MMT, up 2.1 MMTs. Both estimates are below yesterday’s USDA projections of 156 and 133. Welcomed rains fell on Iowa, northern Illinois, southern Wisconsin, and southern Missouri yesterday and overnight. Additional rainfall is expected for the Midwest into early week, with the highest amounts likely to fall in the eastern and southern Midwest. A warmer and drier period still looks likely for the corn belt the final ten days of July. Export sales for the week ended July 6th are included in the following table. Soybean sales were poor but corn sales, particularly old crop sales, were better than expected. Soymeal and soyoil sales were disappointingly low. Yesterday’s market performance to the downside looks a bit overdone, thus the higher trade this morning, but markets are fighting significant headwinds from improving Midwest weather the past three weeks. A choppy trade looks likely today with soybeans the most likely commodity to finish in the green. Have a good Thursday.
Export Sales (Million Bu.) Week Ended July 6, 2023:
2022/23 2023/24 | Corn | 18.4 | 18.5 | | Soybeans | 3.0 | 7.7 | | Wheat | --- | 14.5 | |
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