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Grain Comments: 01-23-2024

Good morning.

Markets have had another quiet overnight session so far on Tuesday. Corn has traded a two-cent range, soybeans have traded an eight-cent range, and Chi wheat has traded a five cent range. Attention continues to be focused on South American weather, as well as developments out of the Middle East/Red Sea. Corn futures are a penny higher; soybean futures are 3-4 cents higher, and Chi wheat is 1-2 cents higher. Products are mixed in a reversal from yesterday, meal is $2-3 higher, while bean oil is down 10 points. Outside markets mixed, crude oil futures are giving back some of yesterday’s gains, down 80-90 cents; the Dow Jones index is down 60 points, and the US$ index is up 10 points.

US and British forces launched fresh strikes on the Houthis overnight. The attacks targeted an underground storage site, as well as missile and surveillance capabilities used by the group.

A senior US military official said the strikes were carried out at eight different locations, and that 25-30 munitions were fired. The Houthis have again vowed retaliation.

Russia unleashed another missile barrage on Ukraine overnight, with local officials saying four people had been killed and at least another 60 had been wounded.

Israel suffered its worst day of losses since its attack on Gaza began yesterday, with the military stating 24 Israeli soldiers had been killed while fighting in the besieged city.

Bloomberg News reported yesterday that Chinese authorities are considering measures to stabilize its slumping stock market.

Policymakers are seeking to mobilize around 2 trillion yuan, or roughly $278.53 billion USD, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link.

Chinese stock markets have had a horrendous start to the year, as slow economic growth along with a number of other slowing economic measures, gives investors reason to stay away.

Meanwhile, US stock markets continue to chug along, with all three major indices making new record highs during yesterday’s trade. The S&P had a new record high close as well.

US farmer selling has been nonexistent in the past several days. Trade feels producer is only 30-40% sold on the 2023 corn crop, which would be well behind normal.

The question now becomes how long the farmer waits to get caught up on these marketings. A good majority out there are still holding out for one more run back to $5.

US temps look to be above average in most places, as well as above average in North-central US by the end of this week, following a mix of rain/ice/wind/snow in the last 48 hours.

Overnight forecast runs are like yesterdays for South America, with conditions remaining mostly favorable in Brazil, while a boost in moisture will be needed in Argentina beyond the first week of Feb.

Have a great day.


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