Weekly Market Update 8-18-23
Here is your weekly market update from the Garden City Co-op Grain Origination Team.
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Export sales for Corn are going in the right direction this week. Old crop saw 9.2mb sold compared to last week’s 5.9mb. With the reduction to the USDA’s export number, corn is 1% ahead of the seasonal pace needed to hit the estimated 8.3mb. New Crop had another okay week with 27.7mb sold. Soybeans exceeded the new crop sales with 51.7 mb. Old crop with a smaller amount reported sold of 3.4 mb. Wheat reported 13.2mb sold, down from last week. Soybeans and wheat are below pace needed for the USDA estimates. Milo is trying to stay consistent reporting 1.6 mb, an increase from last week’s -0.2k bushels, 2.4 NC sales compared to 2.7 LW.
India may be considering importing Russian wheat at discounted prices, in fact 8-9 million metric tons of Russian wheat. Reason being surging global prices in a move to boost supply & curb food inflation that could ease the impact on the poor ahead of next year’s elections. The imports will allow New Delhi/Mumbai to intervene effectively with hopes to drive down wheat prices in the market that stoked inflation to a 15-month high in July, amongst other key commodities like fuel & cereal. India’s lacking in wheat stocks 3-4mmt could cover the short fall however importing the 8-9mmt from Russia will have far bigger impact on the prices. This is according to Reuters News.
Crop Progress Report: Corn and soybeans saw an increase in crop ratings on Monday. Corn saw a bump of 2% and beans jumped 5% nationally. Milo was the commodity to see a decrease of 3%. Kansas as a whole was a mixed bag with corn and milo down 2% & 4% while soybeans so a bump of 2% for crop conditions. It will be interesting to see how the ratings take the next week or 2 with little rain on the horizon for major growing areas and an increase in heat.
The cool weather and rain are gone, and the dog days of summer have arrived. Over the next 10 days temps will push mid 90s to 100 with no rain in the near-term forecast. Winds will also pick up slightly pushing 15+ mph over the next week plus. It is looking like we may have had our last drink of rain for the remainder of the month.