Friday February 2, 2024

  • Mexico purchased 206k tonne of Soybeans for 23/24 delivery 

Wheat Update

  • Lack of fundamental news
  • Taiwan millers bought 90K tonnes of U.S. milling wheat
  • Thailand has bought 120k tonne of feed wheat for March-April shipment. 
  • Mexico remains dry and wheat production estimates down 3% from 2022-2023 to 3.5 million tonnes.
  • Wheat traded within expectation at 323,000, 4% above last year, though 11% behind the 5 year average.

Corn Update

  • Corn is struggling build from the January bounce
  • Mexico’s corn output for 2023-2024 set at 25.5 million tonnes down from 2022-2023 at 28.1 million tonnes.
  • Brazilian first crop corn production rose from 25.8 to 25.9 mmt this month, still below last years 28.6mmt production. Second crop corn slightly down from 96.6 to 96.4 mmt. Total production from 2023-2024 is basically unchanged this month. 
  • Ethanol used 482 mln bu up from 457 mln last month. 
  • Corn traded at the higher end of expectations with sales of 33.7 million tonnes up 3.3% from last year but trailing 7% off the 5 year average. 

Soybean Update

  • StoneX Brazil cut their 2023/24 soybean production estimate from 152.8 to 150.35 mmt., down 5% from last year. 
  • Dec USDA reported total soybean crush came in at a record 204.3 million bushels, up from 200.1 mbu in Nov., though below the average of 206.1 mbu. 
  • Old crop soybean trade lowered to just 6 million bushel this week, setting lowest marketing year so far. 
  • Soybean exports fell below trade estimates with only 165,000 tonnes sold with expectations of 500,000 tonnes.
  • Soybeans sales sit bearish as we are 19% behind last years exports and 11% behind the 5 year average.