This week, Will and Ben breakdown private firm South American crop expectations ahead of key USDA reports.
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Market recap (changes on week):
- March corn down $.04 at $6.76
- December 2023 corn up $.07 at $5.95
- March soybeans down $.04 at $15.26
- November soybeans up $.08 at $13.70
- March soybean oil down $.01 at 60.03 cents/lb
- March soybean meal up $2.20 at $487.70/short ton
- March wheat up $.06 at $7.49
- July wheat up $.11 at $7.65
- April WTI Crude Oil down $2.18 at $75.47/barrel
Weekly highlights:
- Domestic gasoline demand climbed the entire month of January after falling hard in December. However, the increasing domestic demand is not enough to offset total supply and stocks for energy increased for crude oil (174 million gallons), gasoline (108 million gallons), and distillate fuel (97 million gallons).
- Ethanol production increased on the week to above 300 million gallons for the first time in nearly two months. Ethanol stocks decreased on higher disappearance offsetting increased production.
- The Federal Reserve approved a quarter percentage point interest rate increase last Wednesday bringing the benchmark federal funds rate to 4.5-4.75%, but also signaled plans to raise rates again next month.
- Agricultural export sales last week were mixed. Corn exceeded all expectations and has the most impressive sales of the week, while wheat disappointed.
- Corn export inspections declined for the third straight week. It was the fourth week in a row that weekly soybean shipments exceeded 65 million bushels. Comparable to soybeans, wheat also had a strong week- exceeding all expectations and the largest inspections volume in nearly 7 months.
Topics:
- Market recap
- Private South American crop expectations
- USDA reports preview
- Reports to watch
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