October 25, 2023 Grain Commentary
Rain is taking over the extended forecast, giving farmers and elevators time to catch up on unpriced grain. There was a notable increase in open interest and options trading though out the session. There was a softer trade today for corn, beans, and wheat. The US dollar is more robust, leading to weaker equities movement. Energy markets are pushing higher today.
Corn– December corn scraped a new recent low but found support at 4.80. In a matter of 4 days, corn went from a multi-month high to a monthly low. Mexico supported corn with another purchase of corn. The US produced 306 million gallons of ethanol last week, leading the production pace for the previous nine weeks. The UDSA projects Ukraine’s corn production at 30.7 million metric tons, 17% higher than the last year.
Beans– ADM’s CEO announced that Argentina will run out of soybeans by the end of November. This morning, USDA announced a bean sale to China and a meal sale to the Philippines. The new purchase came after China signed a ceremonial contract while visiting Iowa stating they would buy US soybeans and products. The comments could not support beans in today’s trade session.
Wheat– In tomorrow’s export sales report, projections show an above-average wheat week. Rail premiums for KC wheat protein are diminishing after recent strength, slightly reducing the market’s bullish bias.
The DeLong Co., Inc.
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