Managing operation costs as prices fall | Weekly Commodity Market Update for 2/27/24
University of Missouri’s senior research associate Ben Brown and Brownfield Reporter Will Robinson break down the changing market trends and biggest issues for those producing commodity crops.
Learn more about what's happening in the agriculture markets here: https://brownfieldagnews.com/markets/
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Market recap (changes on week as of Monday's close):
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➡︎ March 2024 corn down $0.13 at $4.07
➡︎ December 2024 corn down $.05 $4.57
➡︎ March 2024 soybeans down $.49 at $11.36
➡︎ November 2024 soybeans down $.30 at $11.29
➡︎ March soybean oil down 0.97 cents at 45.02 cents/lb
➡︎ March soybean meal down $15.60 at $334.40/short ton
➡︎ March 2024 wheat up $.11 at $5.77
➡︎ July 2024 wheat up $.11 at $5.77
➡︎ March WTI Crude Oil down $.44 at $77.54/barrel
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Weekly highlights:
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➡︎ Economically initial jobless claims of 201,000 came in well below expectations of a week over week increase to 216,000. Existing home sales also beat the prior period and all expectations.
➡︎ Weekly CTFC data showed that open interest in Chicago Futures and Options was up slightly for Chicago Wheats (0.9%) and corn (0.7%) and up more significantly for soybeans (3.2%).
➡︎ Managed money traders continue to sell Chicago grains and oilseeds. The net short for corn increased 26,391 contracts which took them over the previous record in 2019. Managed money was also a seller of Chicago soybeans by 2,177 contracts and Chicago wheats by 18,135.
➡︎ US Crude oil stocks increased for the fourth consecutive week to help tamper fears about increasing crude oil prices. Gasoline, distillate and ethanol stocks all fell on the week. Gasoline demand was basically flat on the week but remains 8% below last years levels.
➡︎ Ethanol production increased again this week to 319 million gallons up just slightly from last weeks 318 million gallons. Corn used for ethanol production exceed the same period last year by 102 million bushels.
➡︎ US grain and oilseed sales were pretty bearish to end the week Friday. Everything was lower week over week except grain sorghum (But they were coming off a negative week). US soybean and wheat sales came in below pre-report expectations and were bearish to the market.
➡︎ US grain and oilseed export inspections were mixed to slightly bullish this week. Corn export inspections to all destinations exceeded expectations. Wheat shipments were also on the higher end thanks to increased hard red spring wheat shipments.
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Topics:
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➡︎ Market recap
➡︎ Crop market continues downward spiral
➡︎ South American production declines
➡︎ U.S. export inspections
➡︎ Operating with grain in the bin
➡︎ Reports to watch
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