December 7, 2023 Grain Commentary
Market Re-Cap 12/7/23
Tomorrow is the December Supply and Demand Report at 11 am. The industry expects little change, which is standard for the December report. As a reminder, the report will not release new yield numbers that will be saved for January. One wrench could be South America regarding world production; most estimates are lower due to weather conditions. Below is a price action chart for the December report over the past ten years.
Corn– Corn is holding to its narrow trade range, picking up 3 cents in several contracts across the board. The weekly export sales report was lower than the previous week but still in the upper range, contracting 50.7 million bushels. There was a shift in the largest buyers this week, with Japan and China being the leaders rather than Mexico.
Beans– Overnight beans made new lows but recovered nicely, picking up 15 cents for the day in the January contract. The gains followed through the seceding contracts. Beans started the day with another sale of beans, this time to Unknown destination. Weekly export sales for beans were mid-range at 55.8 million bushels contracted. China’s November imports are up 7.8% from the previous year. However, despite the import increase, traders expect delays in clearing cargo at customs to impact the remainder of the year. CONAB cut Brazil’s 23/23 soybean production, shaving off 2 million tonnes from the previous report. The 2023/24 crop is still up from 6 mt from the 2022/23 crop.
Wheat– SWR wheat overcame a midday slump, closing 9 cents higher for the March contract and 4.5 cents higher for July. US wheat export sales were on the lower end of estimate even with a pick up in China purchases. The Chinese contracts were supportive for spreads. World export interest remains strong as demand picks up from Egypt, Japan, South Korea, and South Africa overnight.
The DeLong Co., Inc.