FI Morning Grain Comments 05/22/23

PDF attached

 

Good
morning. 

 

USDA:
Private exporters reported sales of 225,000 metric tons of soybean cake and meal for delivery to the Philippines during the 2022/2023 marketing year.

 

US
debt ceiling talks are ongoing. We expect a resolution early this week. Net drying for selected summer crops for the US is in focus. Lower trade in wheat while corn and soybeans are catching a bid. The US Midwest weather forecast turned slightly unfavorable
over the weekend. Drier weather is expected across much of the Midwest this week. Note the Chicago area for April through May 22, rainfall is about 50 percent of average. MN will see rain through Wednesday. For wheat, rains were near expectations over the
weekend across OK, KS, and west central TX. Argentina’s wheat growing areas will improve over the next month. USDA will update crop conditions this afternoon and we look for an improvement by 2 points for winter wheat. Corn conditions should be reported a
week from today but if the emergence does surpass 50 percent, USDA could issue them today. 
WTI crude oil was 25 cents higher earlier and USD 2 points lower.
The
dip in grain prices is attracting additional corn and wheat import tenders. Third month (Aug) Malaysia palm futures decreased 53 ringgit to 3428, and Aug. cash decreased $12.50 to $822.50/ton. Offshore values were leading SBO lower by about 48 points this
morning and meal $4.80 short ton lower.

 

 

Fund
estimates as of May 19

 

 

Weather

 

 

World
Weather Inc.

WORLD
WEATHER HIGHLIGHTS FOR MAY 22, 2023

• U.S.
  Midwest will experience net drying over the coming week to ten days
• Rain
  is expected in the southern U.S. Plains this week benefiting summer crop planting, emergence and establishment
• The
  moisture comes a little too late to benefit wheat yields
• Western
  Alberta, Canada will receive heavy rain early this week
• Mid-
  to late-week rain is expected in eastern Canada Prairies this week
• Drought
  will continue in the southwestern Canada Prairies
• Good
  planting weather will occur this week in the northern U.S. Plains, although some rain is expected
• Brazil’s
  Safrinha corn areas will get some timely rain late in this coming weekend and early next week ensuring good crop development in the late planted areas of Parana, Mato Grosso do Sul and Sao Paulo
• Some
  of Brazil’s rain will briefly reach sugarcane, citrus and coffee areas in Minas Gerais and Sao Paulo slowing crop maturation and harvesting
• Argentina’s
  wheat areas received rain and will get more, though the west needs greater amounts
• Eastern
  Russia’s New Lands will dry down over the next week to ten days and temperatures will become very warm
• China
  weather will be favorably mixed
• Northern
  India will become wetter than usual later this week and next week
• Australia
  will continue to get periodic rain near the southern coast while interior Western and South Australia are dry biased along with Queensland and northern New South Wales
• Tropical
  Cyclone Mawar will damage Guam and the southern Mariana Islands Tuesday into Wednesday with sustained wind speeds to 127 mph and stronger gusts possibly approaching 150 mph
• Northern
  Europe will be drying down as will western Ukraine, Belarus and the Baltic States

Source:
World Weather, INC.

 

Bloomberg
Ag calendar