Daily Commentary
4/25/24
Wheat futures are trying to trade both sides of unchanged after the open this morning. The overnight session had higher values but prices are down 10¢ off the overnight highs at the time of this writing. CHI is up a fraction, KC is down a fraction, and MN is up 5. Corn is seeing fractional gains, while Beans are down 10. Canola futures are down 4 over the July contract. Paris wheat futures are up about a single Euro.
The U.S. Dollar is higher, Wall Street is experiencing heavy losses, Crude is lower, and Gold is lower.
The weekly export sales report was out this morning. Wheat sales were in line with trade expectations with 82,000 mt sold for 23/24 and 371,900 mt for 24/25. White Wheat sales were at 13,300 mt for 23/24 and 137,200 mt for 24/25. Unknown canceled 87,000 mt of old crop White Wheat that appears to have been switched to 66,800 mt for China and 20,100 mt for Indonesia. Unknown also picked up 18,000 mt of new crop. The Philippines were the featured buyer of new crop White Wheat at 40,000 mt. HRW sales were reported at 27,700 mt for 23/24 and 51,300 mt for 24/25. We are still seeing HRW struggle to get exports picked back up after being lower than HRS, SRW, and White Wheat this marketing year. Mexico was the featured buyer for old crop with 10,200 mt booked. Japan was the main buyer of new crop at 19,100 mt. HRS sales were dismal for old crop at 8,000 mt, but made up for it with 143,200 mt being sold for 24/25 shipment. The Philippines and Unknown were tied for the most new crop purchases at 42,000 mt each. Corn sales were a little better than trade estimates with 1,299,900 mt for 23/24 and 262,300 mt for 24/25. Mexico was the main buyer of corn for both old and new crop with 390,500 mt for 23/24 and 254,000 mt for 24/25. South Korea was a buyer of 252,000 mt of crop, while Japan purchased 233,200 mt. Soybean sales were within trade guesses with 210,900 mt for 23/24 and 120,100 mt for 24/25. China was reported to have bought 167,500 mt, but Unknown canceled 136,800 mt. Would not be surprising to find out some of the Unknown tonnage was switched over to China.
Taiwan was in overnight for 106,675 mt of U.S. origin wheat for June/July shipment off the PNW. The breakdown had 65,775 mt of DNS, 27,500 mt of HRW, and 13,400 mt of White Wheat for the purchase.
Local cash markets were up again on Wednesday. The futures board was able to lend support once again to cash values. Liquidity appears to have calmed down a little from what was seen earlier in the week. The bigger price bumps in a single session appears to have brought more bushels to the market over just the 5¢ rises we have seen each of the last couple days. Expecting to see cash be sensitive to any downward moves in the futures market if that were to occur this morning.
Algeria is reported to have purchased 30,000 mt of optional origin feed corn for May shipment after tendering for 120,000 mt. The corn complex is struggling to trade higher on a lack of fresh bullish, and an accelerated planting pace when compared to the 5-year average in this last week's progress report. This morning's export sales report is offering underlying fundamental support to the complex.
Soybeans are seeing limited losses after export sales were near the lower end of the trade estimates. Stronger exports of soybean meal and soybean oil due to Argentina harvest delays is helping the bean complex see limited losses so far today.
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MARKETS
MORNING FROM 9:30 - 11:10 A.M.
AFTERNOON FROM 2:30 - 4:30 P.M.
NO AFTERNOON MARKET ON FRIDAY
NON-HARVEST OFFICE HOURS
MON-THURS 7:30 a.m. - 5:00 p.m.
FRI 7:30 a.m. - 11:30 a.m.
CURRENT PROTEIN SCALES
DNS: +.04/-.08 PER 1/4% BASIS 14%
HRW: +.05/-.10 PER 1/2% BASIS 11.5%