Weekly Market Update 8-31-23
Here is your weekly market update from the Garden City Co-op Grain Origination Team.
**Garden City Co-op offices will be closed on Monday 9/4 for Labor Day. Commodity markets will also be closed**
**Effective Friday, September 8th, storage rates for fall crops will increase to 5 cents per bushel per month**
Where was the first Labor Day parade?
Which U.S. President signed the bill making Labor Day a federal holiday?
Answers at the bottom.
Mississippi River water levels continue to decline which is causing problems. We could see water levels approach the record lows that were set last October, this is due to lack of rain through the river valley region. This creates more demand issues, especially with harvest right around the corner. Barge rates have continued to move higher which is putting a lot of pressure on basis values for corn and soybeans along the river, but there is a trickle-down effect with this, and it can be a factor for local basis to take a hit. On a global picture this situation is causing beans and corn difficulty getting down the river and into the gulf. With the higher barge rates mentioned before this will cause export prices to increase and could take buyers off the table, specifically China’s interest in soybeans.
Export Inspections for US corn this week were at 23.5 million bushels, which is a 3.4-million-bushel increase from the previous week. Mexico was the top destination for these exports, followed by Colombia. However, despite the increase, the exports are still below the seasonal pace required to meet the USDA estimate of 25.5 million bushels. Soybean export inspections were at 11.8 million bushels, which is in line with the current week's trade estimates. With one week left, the total soybean exports are 32 million bushels above the pace needed to meet the USDA's target. Milo was shipped at a steady pace of 3.1 million bushels, which is above the pace required to meet the USDA's target.
Export Sales Corn export sales were mediocre at 2.8 million bushels, with 26.1 shipments this week. However, there was a decent flash sale with new crop sales of 39.0 million bushels. Old crop soybean sales were at -1.9 million bushels, while new crop sales were reported at 41.3 million bushels. China received 14.5 million bushels of these sales, with Mexico following. Milo sales remained quiet with 0.1 million bushels sold for old crop and new crop sales of 9.9 million bushels above the pace needed to meet the USDA target.
More of the same hot, dry weather headed into the weekend. Highs will touch 100 degrees for the next few days, but will "cool off" into the 90s mid-week. Chances for rain are hanging out in the forecast for next Thursday and Saturday, much needed as we approach wheat drilling. This week's drough monitor saw continued intensification of drought across areas of the Midwest, South, Southwest, and the Pacific Northwest.
New York City (1882)
Grover Cleveland (1894)