October 19, 2023 Daily Grain Commentary
Stellar gains for corn, beans, and wheat to end the day after a soft morning. The biggest headliner for today is “severe drought conditions in the Amazon is forcing Brazil grain exporters to divert cargo ships to southern ports.” The South American news outpowers another significant story. China has approved 37 GMO corn seed varieties and 14 GMO soybeans varieties. The approval of GMOs in Chinese production could influence grain imported.
Corn– December corn finished above 5.00 for the first time since August. Export sales for the week were in the estimated range and similar to the previous week, which is well above the needed pace. Ethanol had its third week of increased production and falling stocks. Gasoline demand is also up significantly for the same time period.
Beans– Bean export sales were also within estimates’ range, however, well over the previous week. Soymeal continues to support the bean market, picking up $37 in just four sessions as demand is outpacing production. The trade is concerned with soybean planting in Brazil, with too much rain in the south and drought conditions in the north region.
Wheat– Another strong week of wheat export sales, contracting 23.3 million bushels. The average pace for the year is only 8 million bushels to meet projections. The recent increase in wheat sales to China solidifies concerns over their wheat crop.
The DeLong Co., Inc.
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