Grain Comments: 11-01-2023

Good morning

Ag markets are again mixed this morning. Corn futures are fractionally higher; wheat is 2 to 4 cents stronger. Soybeans are steady to 3 cents lower. Soymeal and soyoil futures are lower. Dow futures are down 107 points, crude oil is up $1.75/barrel. The U.S. dollar is stronger to start the day.

The FOMC meeting which began yesterday will finish today with an announcement regarding short term interest rates expected early this afternoon. Comments from Fed officials at the meeting’s conclusion will give an indication as to interest rate direction into early 2024..

Deliveries against November futures consisted of 438 lots of soybeans for the second straight day. There were no meal or soybean oil deliveries.

Parts of southern Brazil continue to experience flooding as more rain falls this week. A brief dry period is expected this weekend into early next week before more rains fall by the middle of next week. Central Brazil will benefit from improved rainfall into next week, improving soil moisture for soybean planting and early season crop development.

Scattered showers this week have improved wheat and corn prospects in Argentina and improved conditions for early soybean planting. However, colder temperatures may produce some frost in southern Argentina the next few nights.

The weekly energy production report from the Energy Information Agency later this morning is expected to show last week’s ethanol production steady to slightly higher compared to the previous week’s output..

NASS will release its monthly Fats & Oils and Grain Crushings reports this afternoon. Traders expect the U.S. September soybean crush to be near 173 million bu. or about 3% higher than a year ago. Corn used for ethanol production during September is expected to be near 412 million bu. or about 7% more than September 2022.

Although still abnormally low, water levels on the lower and mid-Mississippi river have risen recently, and some loaders have increased loaded barge drafts.

A port on the west corridor of Brazil’s Paranagua port is expected to reopen on Saturday after being closed since last weekend due to a fire. The closing has exacerbated logistical problems at Brazilian ports. Some vessels are waiting over 40 days to load grain at the busiest terminals.

Have a great day