Weekly Commodity Market Update: USDA report shakes up market

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Brownfield's Weekly Commodity Market Update

This week Will and Ben break down how a USDA report shook up the markets last week. Market recap (Changes on week as of Monday's close): - December 2023 corn flat at $4.77 - December 2024 corn flat at $5.17 - January 2023 soybeans up $.18 at $13.82 - November 2024 soybeans up $.03 at $13.07 - December soybean oil up .74 cents at 51.54 cents/lb - December soybean meal up $31.60 at $469.10/short ton - December 2023 wheat up $.04 at $5.79 - July 2024 wheat down $.05 at $6.30 - January WTI Crude Oil down $2.52 at $78.39/barrel Weekly Highlights • After a disappointing week of Ag Export sales two weeks ago, last week’s export sales of grains and oilseeds were up week over week. Everything was within expectations. • The November USDA Supply and Demand Report (WASDE) raised US corn and soybean yields from October and above expectations. USDA offset the 170 million increases in corn production with 125 million bushels in added demand. For soybeans, the added soybean production of 25 million bushels carried through to higher ending stocks. • Open interest of Chicago futures and options positions was flat for wheats, up 3.1% for corn, and up 3.9% for soybeans. • Managed money traders sold off another 24,156 contracts of US corn to increase their net short by 16.7% and sold off 7,952 contracts of Chicago wheats to increase their net short while buying 45,445 positions of Chicago soybeans increasing their net long. • US grain and oilseed export inspections were rather neutral to slightly bearish. Soybean export sales were bearish compared to expectations, but there haven’t been the export sales to justify higher soybean export inspections. • US harvest is nearly finished with 95% of beans harvested and 88% of corn harvested. • US winter wheat conditions are off to a much better start this year than the last two years. Winter wheat conditions of 331 compared to last year’ 291 score and a 5-yr average of 328. Reminder- conditions in the fall have low correlation to yields next summer. Topics: - Market recap - Takeaways from USDA's recent reports - U.S. corn and soybean yield estimates rise - U.S. corn demand estimates rise - Reports to watch See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.