Thursday September 26, 2024
- The market is in the green this morning.
- Exporters sold 180k tonnes of corn to Mexico for 24/25 delivery & another 115k tonnes of corn to Mexico for 24/25 delivery.
- The November 24 soybean contract had its best close since late July. The contract gained 11 cents to close near $10.54 futures.
- Chinas stimulus and dry conditions in Brazil have helped support price action
- Overnight news outlets reported that China is considering additional stimulus
- Chinas stimulus and dry conditions in Brazil have helped support price action
- The December 24 corn contract also closed higher and posted its best daily close since late July.
- Despite a lower Russian wheat crop, their exports for the next few months continue to be elevated near record numbers. Their exports won’t drop until the tail end of the export season, and the lower production will just lead to lower ending stocks next year. This will push off any bullish story to 2025. (See charts below)
- Brazils weather continues to be drier than normal in soybean growing areas. This drought has halted grain transportation through the Madeira River, an important channel that connects the crop areas of Mato Grosso with key ports.
- Argentine farmers are slated to favour soybeans over corn this season. The soybean crop is estimated to increase by 3% while the corn crop is said to decline by 5%. Soybeans are being favored for their higher profitability. They’re shying away from corn due to concerns of leafhoppers causing another outbreak of stunt disease.
- US ethanol production declined last week and was down 5.2% on the week