October 3, 2023 Daily Grain Commentary
It was a little less exciting day in the ag markets today. Corn and beans closed lower while wheat picked up a few cents. As we approach 25% completed on harvest, softer demand and better than excepting yield seem to be the easy targets for today’s price actions.
Corn– Corn traded in a narrow range today, closing lower for the day. StoneX estimated 175.5 bushel average yield, which increased their estimate for the 2023 production. Export inspections are softer than the previous week. Even with the downward trend in price, US corn is still at a price disadvantage in Asia compared to Ukraine and South America.
Beans– Beans took out new lows today but recovered at the tail end of the day, only closing a few cents lower. USDA confirmed another nice sale to China for beans today. StoneX projected an average 50.4 bushel yield for this fall, increasing from the previous reporting. Oil was the topic of discussion for today. Malaysia is contemplating expanding its B10 biodiesel program, which mandates the use of 10% palm oil in the industrial sector. Malaysia’s plantations and commodities ministry has proposed reducing the windfall levy for palm oil producers in Sabah and Sarawak from 3% to 1.5%.
Wheat– Wheat had a much calmer day today, closing only a few cents higher. The USDA confirmed the rumor of an SRW wheat sale to China this morning. Ukraine has planted nearly 3 million hectares of winter crops, including 1.7 million hectares of winter wheat, despite unfavorable conditions caused by a prolonged lack of rain in many regions.
The DeLong Co., Inc.
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