Weekly Market Update 4/6/2023
Here is your weekly market update from the Garden City Co-op Grain Origination Team.
In what country did the tradition of the Easter bunny originate?
What is the most sold Easter candy?
Answers at the bottom.
National wheat conditions came in even lower than expected. USDA released the first set of national winter wheat conditions for spring on Monday, rating the crop 28% good-to-excellent. The trade was looking for 31%. Last year the crop was rated at 30% good-to-excellent, while the 5-year average at ths time is 43%. Kansas was reported at 26% good-to-excellent, compared with 32% last year and a 38% 5-year average. Check out the map below for a state-by-state breakdown.
Some global grain merchants are ceasing Russian exports. On Monday, Louis Dreyfus Company announced they will stop exporting Russian grain as of July 1st, joining Viterra and Cargill in dropping activities in the world’s biggest wheat country. Most international grain traders have stopped any new investment in Russia since the invasion of Ukraine last year but have continued shipping Russian wheat. Russia’s Ministry of Agriculture has said the moves will not affect the volume of Russian grain exported and that other firms will make up the difference.
Export sales were nothing to write home about. Corn sales were decent, reported at 49.1 million bushels of old crop and 1.0 million bushels of new crop. Top buyers included China, unknown destinations, Mexico, and Japan. Soybean sales are dragging the market down today, coming in below even the lowest estimate with old crop sales reported at 5.7 million bushels. The new crop slot had net cancellations of 1.8 million bushels for beans. Wheat sales were reported at 7.1 million bushels of old crop, with net cancellations of 1.1 million bushels of new crop wheat. New crop wheat sales are on their slowest pace in five years.
USDA will release the April WASDE next Tuesday morning. The trade isn't expecting much out of it as US weather reports and planting progress remain front and center. Planting progress will be watched more closely this year given how tight all the balance sheets are. Any shift in acres will matter and could change market dynamics. One point traders will be watching is South American production estimates, seeing what USDA does in regards to reducing Argentina's numbers. Estimates for Tuesday's report are in the table below.
Commodity markets, as well as GCC offices, are closed tomorrow for Good Friday.
Heading into the weekend and upcoming week we can expect warmer, more spring-time vibes with temperatures in the high 70s and lows in the 40s. It’s going to be windy throughout the week with 10-20 mph breezes. Unfortunately chance of any moisture coming our way are slim – counties are seeing extreme drought conditions and are in desperate need of some downpour.
According to Instacart, it's Reese's Peanut Butter Eggs, followed by Kinder Chocolate Candy Eggs and Starburst Easter Jellybeans.