Business & Investment

Grains, oil seeds supported by a wider market, commercials

Market news

Grains, oil seeds supported by a wider market, commercials

Soybeans were more expensive in commercial and technical purchases with the help of wider markets. End-user demand for soybeans and soy products remains strong and the squeeze margin is very good. This helps eliminate some of the concerns about the pace of exports. USDA’s weekly export and sales report is available Thursday morning at 8:30 east / 7:30 center. Soybean meal and oil were also supported by commercial purchases and trade in a wider market. According to reports from South America, in the state of Parana, Brazil, soybean conditions are declining due to hot and dry weather consistent with the La Niña phenomenon, which also causes some stress on soybeans in Argentina and Paraguay. increase. The situation in other parts of Brazil is generally good. CONAB’s next guess for Brazil is January 11thth, 12 updated USDA forecaststhIn addition to the first “official” 2021 US production total of beans and corn.

Corn was slightly higher in commercial and technical purchases, in addition to external market influences. Corn for ethanol is solid and has a very good margin for most Midwestern producers. According to the US Energy Information Administration, ethanol production averaged 10.51 million barrels a day last week, down 36,000 barrels a week, but increasing 75,000 barrels a year. Meanwhile, inventories fell to 20.7 million barrels for the first time in five weeks, down 2.64 billion from last week and a year ago. Trade monitors the dry weather in southern Brazil and parts of Argentina in line with the La Niña phenomenon. The big question for South America is how that weather pattern affects Brazil’s major second corn crop, which is the most exporter. In a quarter of the current marketing year, US corn export demand is slower than expected, and despite its price advantage, China favors Ukraine over the US. Ethanol futures did not change.

Wheat complexes were heavily purchased commercially and technically, in addition to low trade in the US dollar. Chicago and Kansas City have taken the lead, supported by the recent financial resources that underpinned Minneapolis. Drought continues to be a concern from the south to the northwest of the US Plains. The long-term outlook for the southwestern plains remains dry, typical of La Niña, and the southeastern and northwestern plains are raining, but more will be needed. Precipitation was sufficient, if not excessive, in parts of the eastern Midwest. The acreage of winter wheat is expected to be more than a year ago, and the acreage of USDA is from January Trade also monitors the situation in Europe, Russia and Ukraine, along with harvesting activities in Argentina and Australia.

Grains, oil seeds supported by a wider market, commercials Grains, oil seeds supported by a wider market, commercials

Back to top button