Friday October 25, 2024
- Markets are ending off the week in the red
- Soybean futures closed lower yesterday after moving to fresh 2 week highs. The Nov 24 contract got as high as $10.12/bu futures but closed at $9.96/bu. We are seeing some additional downward pressure this morning.
- Export Sales Report: we talked about export sales yesterday but below is some more info to consider.
- With corn export sales 5% ahead of the USDA pace, the market is starting to believe this export pace will be maintained, but we will need to get through harvest first to be sure.
- Bean sales had the largest week recorded this marketing year with China taking 60% of the 79.1 million bushels. This is the time of the year when the US should be exporting beans and this is a seasonal norm. These sales to China have been great but its unlikely China is going to buy enough to fill the deficit to meet export expectations.
- Flash Sales:
- Exporters sold 227,600MT of corn to Japan for 24/25 delivery
- Exporters sold 165,000MT of corn to unknown for 24/25 delivery
- Exporters sold 198,000MT of soybeans to unknown for 24/25 delivery
- This weeks drought monitor showed 80% of the US is in some stage of drought. Drought conditions seem to be present in every state. These dry condition have been great for US harvest progress and wheat planting. Wheat planting is seen as 73% complete. It will be interesting to see how this impacts wheat conditions ratings once the USDA begins releasing those reports again.
- We mentioned the BRICS summit previously, below is a chart that demonstrates just how impactful the BRICS nations are when it comes to grain. BRICS is and will continue to be very impactful as it now includes some of the largest producing and consuming grain nations in the world.