Weekly Market Update 1/26/23

 

Here is your weekly market update from the Garden City Co-op Grain Origination Team.

Trivia

1. Which is the only edible food that never goes bad?

2. Which country invented ice cream?

Answers at the bottom.

Market News

• The grain complex has rebounded nicely following a rough Monday. Supply and demand situations around all grains remains tight overall spurring the market higher. It seems the Ukraine/Russia War could be at the front for headlines in the near future with tanks from Germany being sent to Ukraine, they are said to arrive end of March early April. Does Russia ramp up their activity and try to hit Ukraine hard before then? Time will tell but the war will likely influence the market in the next few months one way or another. Export inspections were so-so this week with only soybeans testing the high trade estimates. Mexico was the top destination for corn and wheat and China the top destination for soybeans and milo. Export sales were solid with only corn still falling behind overall. Most sales were to the usual suspects China leading beans and milo, Mexico for corn, and Japan and Mexico for wheat.

• ​Chinses Optimism: Energy futures rose overnight by about 1% due to expectations that demand will strengthen from China, as the nation reopens its economy after an extended period under strict COVID-19 restrictions. The reopening of the Chinese economy is anticipated to tighten commodity markets significantly, which is especially true if the reopening is done orderly and without a return to strict lockdowns.

• An update has come out regarding the nation’s largest refinery, Motiva Enterprises’ Port Arthur facility. The update stated that the refinery was operating normally after upsets on Tuesday from a severe storm that blew through the area (west of Houston). The Refinery has a capacity of 626k barrels per day, and the storms had appeared to affect jet/kerosene and lube oil production.

Weather

Cooler Temps have been the normal lately still thankful for the snow we received a week prior.  Current weather warming up here at the end of this week with highs in the upper 40s then back down at the beginning of the week with highs in 20s & 30s lows in the single digits. It will remain cooler up into early February cloudy and partly cloudy for most of the week leaning above normal with precipitation chance, but unfortunately no moisture falling with the forecasted future.  No high winds to be expected for the upcoming week. 

Trivia Answers

1. Honey

2. China