Grain Comments: 06-08-2023

Good morning:

Corn traded lower into the late-night hours but has recovered ground since; rallies should be limited through tomorrow morning with increased carry outs expected this month and weather forecasts more mixed.

Scattered rains again fell in the southern Plains over the past 24 hours, as well as in MN and northern IA, spreading down to the SE belt; chances remain scattered through the weekend, but overall five-day coverage appears decent for all but MN. Extended maps are mixed both temperature and precipitation wise.

Trade is again expecting to see low numbers in this week’s export sales report. The United States continues to see heavy pressure from South America on corn and soybean exports as their offers remain well below the US. Russia remains the cheapest source for wheat, but we are seeing lower offers from others as well. Another factor that is reducing demand for US offers is the value of the US dollar. The US dollar has rallied in recent weeks and again made our commodities even more expensive. Importers have reverted to buying only what they need to cover immediate usage as a result. An ongoing inability for some importers to secure financing has also impacted commodity buying. These concerns have been mostly in the old crop contracts, but the US is seeing limited interest in new crop offers as well. The record new crop projections out of South America are limiting US sales for those months. This lower demand has also taken some of the support away from current weather issues across the United States. Domestic demand has been steady in recent weeks, but may also fall short of expectations, mainly on corn for ethanol.

Have a great day!