MarketEdge PM Comments
Jul 24, 2023
(Caleb Kaufmann)
Wheat led the way higher today limiting up on news of more Russian aggression as Russia destroyed Ukrainian grain warehouses on the Danube River and wounded seven people in a drone attack, expanding the target area of an air campaign it launched last week after pulling out of the Black Sea grain deal. Chicago and KC wheat will go to expanded limits in the overnight and tomorrow’s trade. Corn and bean markets both followed with September corn up 33 ½ to $5.6050, December corn was up 32 to $5.6825, August soybeans were up 22 ¼ at $15.2325, and November beans closed up 22 ¾ to $14.2450.
Wheat led the way higher today limiting up on news of more Russian aggression as Russia destroyed Ukrainian grain warehouses on the Danube River and wounded seven people in a drone attack, expanding the target area of an air campaign it launched last week after pulling out of the Black Sea grain deal. Chicago and KC wheat will go to expanded limits in the overnight and tomorrow’s trade. Corn and bean markets both followed with September corn up 33 ½ to $5.6050, December corn was up 32 to $5.6825, August soybeans were up 22 ¼ at $15.2325, and November beans closed up 22 ¾ to $14.2450.
- The December 23 corn contract rose 6% on the day, a daily for record for the life of the contract so far
- USDA announced this morning the sale of 121,000 tonnes of Soybeans to China for delivery in 2023/24
- US weekly exports for last week puts corn, again, short of the needed pace of 29.7 million bushels/week with 12.2 million and over the last three weeks have averaged 14.1 mil bu/week. Soybean exports were 10.4 million bushels, averaging 9.2 mil bu/week over the last four weeks, maintaining the average needed pace of roughly 9.4 million/week in order to reach the USDA's 1.980 billion bushel export projection
- US corn conditions rating comes in unchanged from last week at 57% G/E, most analysts expected a 1% increase
- Iowa 63% (64 LW), Illinois 45% (41 LW)
- US soybean conditions fall 1% vs last week at 54% G/E
- Iowa 58% (58 LW), Illinois 44% (40 LW)