Tight soybean market to get tighter | Weekly Commodity Market Update for 9/19/23

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Brownfield's Weekly Commodity Market Update

This week, Will and Ben look at what a tightening soybean picture means as farmers roll into harvest. Market recap (changes on week as of Monday's close): • December 2023 corn down $.14 at $4.71 • November soybeans down $.53 at $13.16 • October soybean oil up 1.05 cents at 62.39 cents/lb • October soybean meal down $15.60 at $390.40/short ton • December 2023 wheat up $.07 at $5.91 • July 2024 wheat up $.03 at $6.40 • September WTI Crude Oil up $3.41 at $89.28/barrel Weekly highlights: • US energy stocks were up for crude oil (166 mil. gal.), gasoline (190 mil. gal.) and distillate fuel (165 mil. gal) after weekly gasoline demand fell hard, down 11% week over week. • Ethanol production picked up 7 million gallons week over week to settle back over 300 million gallons of weekly production at 305 million gallons. Ethanol stocks decreased signaling rather strong ethanol exports. • The September USDA Supply and Demand report was rather neutral for domestic balance accounts. 2023/24 corn stocks increased on higher acreage stocks more than offsetting a 1.3 bu/acre reduction in yield and smaller beginning stocks increasing ending stocks 19 million bushels. Soybean stocks for 2023/24 continue to tighten down another 25 million bushels this month. • The first week of the 2023/24 marketing year showed solid weekly sales volumes, but early sales were such that most commodities are starting with an annual deficit. Corn (-6%), Bean (-3%), and all wheats (-3%). • The National Oilseed Processors Association announced their members crushed 161.5 million bushels of soybeans in August- down from 173.3 in July and 165.5 last August. • Open interest positions of Chicago commodities were mostly up on the week. Corn, soybeans, soybean meal, and soybean oil and wheats saw increases. • Producers and merchants were active buyers on the week with their net short position of futures and options shrinking by nearly 42%. Conversely, managed money traders were net sellers increasing their net short by almost 44%. • US Ag Export inspections were mixed with corn and soybeans up week over week with grain sorghum and wheat down. For corn, this was the largest weekly volume since early July. • US corn harvest is now 9% complete with corn crop conditions deteriorating further. • US soybean harvest is now 5% complete with conditions declining only slight. Topics: • Market recap • USDA WASDE review • Tightness in soybean market • Soybean crush down • Harvest picks up • Reports to watch ----- Find more agriculture news: https://brownfieldagnews.com/ See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.