U.S. planting well ahead: Weekly Commodity Market Update for 5/23/23

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Brownfield's Weekly Commodity Market Update

This week, Will and Ben check up on planting progress. ----- Market recap (changes on week): - July corn down $.21 at $5.71 - December 2023 corn down $.06 at $5.09 - July soybeans down $.59 at $14.41 - November soybeans down $.34 at $11.97 - July soybean oil down less than 1 cent at 48.77 cents/lb - July soybean meal down $18.70 at $412.20/short ton - July 2023 wheat down $.54 at $6.06 - July 2024 wheat down $.42 at $6.61 - June WTI Crude Oil up $.88 at $72.05/barrel Weekly highlights: - US gasoline demand was down 4% week over week and down 1% compared to this same week last year. Stocks of crude oil minus the strategic petroleum reserve increased, while gasoline stocks were down, and distillate and ethanol stocks were basically flat. - US ethanol production increased 6 million gallons last week and used roughly 97.8 million bushels of corn. The volume was down from last year and the 5-year average. - The Black Sea Grain Initiative was officially renewed for another 60 days putting some bearish pressure on US cash prices. - US Ag Export sales last week were rather disappointing to old crop markets- net cancelations of corn, milo, and wheats while soybeans were at the bottom end of the trader expectations. Wheat sales were bearish falling below all expectations. - US agricultural export inspections last week were steady to bullish with corn on the top end of expectations and wheats exceeding all pre-report expectations. Soybeans were down week over week and on the lower end of pre-report expectations. - Open interest futures and options positions were up across the board last week for the second week in a row: Chicago Wheats (up just slightly), Corn (+4.4%), Soybeans (+6.9%), Soybean oil (+10.0%), Soybean meal (+3.6%), Cotton (+5.0%), and Rough Rice (+5.0%) - Managed money holdings of futures and options positions were mixed with Chicago wheats shedding another 10,275 contracts following 15,481 contracts last week. Corn bought back 17,658 but still maintain a net short position. Soybeans shed some more positions, down 24,517 to shrink their net long. - Friday’s USDA Cattle on Feed Report reported 11.6 million head or 97% on feed as of May 1 which was just a smidge higher than the pre-report estimates of 96.7%. Slightly higher April placements led to the higher than expected cattle on feed number. - USDA’s crop progress report showed 81% of the nation’s corn planted- up another 16% from last week and ahead of the 5-year average for this time of the year. - 66% of the soybean crop planted- up 17% on the week and above average of 52% for this time of year. - Spring wheat planting is starting to catch up at 64% of the spring wheat has been planted- behind the average of 73%. I wonder how much of this is planting and how much is farmers deciding to switch crops or take prevent plant. - Winter wheat conditions as a whole were a little better than last week with the good to excellent combined rating up 25 to 31%. Topics: - Market recap - Corn and soybean planting - Fuel demand - Export update - Black Sea corridor extended - Wheat condition - Reports to watch ----- Find more agriculture news: brownfieldagnews.com See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.