This week, Will and Ben look at the Russian Ukrainian war's impact on markets as it enters year two.
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Market recap (changes on week):
- March corn down $.39 at $6.38
- December 2023 corn down $.22 at $5.72
- March soybeans down $.40 at $15.00
- November soybeans down $.35 at $13.61
- March soybean oil down 2.09 cents at 59.81 cents/lb
- March soybean meal up $4.70 at $491.10/short ton
- March wheat down $.65 at $6.92
- July wheat down $.57 at $7.15
- June WTI Crude Oil up $.97 at $77.53/barrel
Weekly highlights:
- US ethanol production was up 5 million gallons week over week and brought production volumes above 300 million gallons on the week once again. It was also a strong week for gasoline demand with the highest volumes of the calendar year so far.
- Ag export sales last week were down week over week for corn- extending a three-week trend- soybean meal and oil, and grain sorghum. However, volumes were up week over week for soybeans and wheat. All were within trade expectations.
- At USDA’s Ag Outlook forum last week- the agency released expectations for 2023. Corn acreage was estimated at 91 million, soybeans at 87.5 million and wheat at a seven year high of 49.5 million. Corn price falls $1.10 year over year, soybeans down $1.40 and wheat down $0.50.
- USDA reported that there were 11.7 million cattle on feed last Friday, down from 4% the year prior- in line with analyst expectations.
- We get state stories today but yesterday’s report from Kansas showed that winter wheat in that state was 51% combined poor or very poor.
- Ag exports last week were mixed. Down week over week for corn and soybeans but up week over week for grain sorghum and wheat. For soybeans, this was the lowest volume since early October. The corn export deficit grew another 18 million bushels on the week.
Topics:
- Market recap
- Russian/Ukrainian war reaches one year
- Ethanol and biofuels market expectations
- Reports to watch
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