MORNING OUTLOOK
Grains are mixed. SH is up 2 cents and near 13.70. SMH is near 412.5. BOH is near 56.55. CH is unch and near 6.05. WH is unch and near 7.84. KWH is up 1 cent and near 8.22. MWZ is unch and near 9.99.
US stocks are marginally higher. US Dollar is higher. Gold, silver, cocoa are lower. Coffee, sugar and cotton are higher.
Dalian soybean, soymeal, palmoil, soyoil and corn futures were lower. Lower trade due to forecast for S Brazil, NE Argentina showers. 2nd week forecast is drier. US rains will be in Delta and Tenn valley. US south plains dry. South US temps above normal. Canada temps near record low. This week US N plains also cold, Russia/ EU weather ok.
One group lowered SA soybean crops 7-8 mmt from USDA to 195.0-196.0. 1-2 mmt above ly. Weekly US soybean exports remain below est. No new China biz. They are watching SA weather. Matif rapeseed traded lower. EU demand strong given SBO/palmoil rules against bio diesel.
Lower 1st crop Brazil corn yields tightening South America 2022 supply and add to US demand. Some now estimate SA corn crops near 172.5 mmt versus USDA 176.5. No Brazil fob offers. US domestic corn use higher than USDA estimate. Corn exports higher esp Canada/Mexico. Wave of profit taking and lower wheat prices dropped CH down to 6.05.
Wheat futures lower. Better Russia weather negative. Low weekly exports also negative. Argentina wheat crop 22 mmt vs USDA 20. Australia futures lower. Talk that Russia wheat could go to China and Algeria negative to futures. Egypt tendering.
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