October 5, 2023 Daily Grain Commentary
Finally, some stimulating news to perk up the markets, pushing corn, beans, and wheat to close higher. Softer trading in the morning hours reversed higher as headlines appeared of a vessel leaving Ukraine hitting a mine in the safe corridor.
Corn– Corn export sales for the week were better than expected. 63% of the sales were for Mexico this week. USDA is projecting a 24% larger export volume; year to date sales are 9% ahead of last year. See export numbers below of corn exports from 2017-2023.
Beans– Beans persevered despite crush trading lower for the 7th straight session. Argentina’s soybean processing plants are facing a crisis because of the historic drought, leaving some plants idle. Bean exports hit a marketing year high, with China as the biggest buyer for the week. So far, bean sales are 32% behind last year’s pace. Added below are the bean exports from 2017-2023; the numbers so far are lining up with 2018-2019 when China receded from buying soybeans.
Wheat– Ukraine is likely to plant less wheat in 2024 because of prolonged drought conditions. Russia’s President made some interesting statements. Here are just a few- “Russia will accomplish their goals”, “NATO is a tool of the US foreign policy, and Russia is against Ukraine joining the alliance.”
The DeLong Co., Inc.
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