November 13, 2023 Grain Commentary
Market Re-Cap 11/13/23
Corn and beans show life after last week’s losses. South American weather took over the markets today. Corn and beans both found support from Brazil, which is 30 days behind on planting beans with the mindset that current planting delays could result in late planted second crop corn. More excitement builds as President Biden meets with China’s President Xi Wednesday on US soil.
Corn– Corn collected back most of its losses from last week. Corn harvest is 88% complete, taking full advantage of the nearly perfect harvest conditions. Corn export inspections were within expectations and ahead of the previous week’s shipments. Mexico is still coming in strong with the additional corn purchases verified with another USDA sale announcement this morning. Dry weather is reflected in the Brazilian corn futures as they spike limited up today. Brazil’s corn planting is lining up with the 5-year average. However, Argentina is a different story. Severe drought in Argentina has corn panting at 29% complete, 3% ahead of the previous year but 11% behind the five year average.
Beans– Beans and meal picked up significant gains today. US soybean harvest is 95% completed, about 4% ahead of the average pace. Export inspections for last week were weaker, below expectations, and lowest volume in 5 weeks. Beans started the week with a sale to China for the current marketing year. Projections for the Brazil crop have been all over. Recent AgRural projects have declined from 164.6mmt to 163.5mmt due to recent weather. Currently, Brazil is 57% planted, about 12% behind the 5-year average, with lots of replanting. The sediment for SA beans could shift as the forecast for the 11-14day calls for wetter weather.
Wheat– Wheat was just along for the ride today, with no direct support. Wheat shipments picked up pace from previous shipments yet were within expectations. US winter wheat is 93% planted, at the 5-year average. Winter wheat is 81% emerged, and 47% of the wheat is good to excellent condition. Wheat conditions have declined 3% in the past week but are well ahead of the 32% g/e rating from 2022.
The DeLong Co., Inc.