Weekly Market Update 9-29-23
Here is your weekly market update from the Garden City Co-op Grain Origination Team.
What team holds the record for the greatest comeback in NFL history?
What was the first vegetable grown in space?
Answers at the bottom.
Exports Export demand is diminishing for soybeans due to several issues. The Mississippi River is facing record lows, which prevents barges from shipping at maximum capacity. Additionally, the rates for transporting goods up and down the river have increased, with little hope for relief in the forecast. Despite these challenges, a considerable amount of corn was sold to Mexico earlier this week via rail. Corn sales were reported at 33.1 million bushels sold, compared to last week's 22.3 million bushels. Corn also reported 600,000 bushes of new crop sales. Soybeans reported with 24.7 million bushels sold versus last week's 15.9 million bushels. Soybeans did not have any reported new crop sales. 2.3 million bushels of milo sold against last week's report of 0.0. 7.1 million bushels of new crop were reported sold. Wheat exports were 20.0 million bushels. Last week, 11.3 million bushels were sold for wheat. Export Inspections for corn came towards the higher end of the trade estimates at 26 million bushels shipped this past week, keeping in line with the 5-year average for this point in the year. Milo reported 100,000 bushels inspected and shipped. Corn and milo met the required pace, while soybeans and wheat fell below the USDA target. 17.7 million for soybeans and 16.6 million bushels for wheat shipped.
Government Shutdown Looks Possible With less than two days remaining until a critical deadline to extend federal funding, Congress seems to be headed toward a government shutodwn as lawmakers have yet to make a deal. The Senate put together a proposal to avert a shutdown, but the proposal is unpopular among House Republicans. Meanwhile, voting failed today on a short-term funding bill proposed by House Republicans. While the looming possibility of a shutdown isn't likely to tank stock markets, it does cast a shadow on a market already struggling with uncertainty. The S&P 500 and Nasdaq Composite are both on track to post their worst month of the year.
USDA Quarterly Stocks Report: Corn stocks came in below the trade estimates at 1.361 billion bushels, even with the decrease in stocks when plugging this into the supply and demand table for 23/24 crop we still see a 2.13-billion-bushel carryout. Really no change for corn and no good news for bulls to rally is why we saw a selloff in corn today. Soybean bulls were heading for the hills too when the bean numbers were released. Soybean stocks came in above trade estimates at 268 million bushels. With the tight balance sheet coming into this report these numbers will take some pressure off the balance sheet for now. Wheat was the big changer for the day. Stocks were reported at 1.780 billion bushels above the average trade guess. Bears took this and ran and the market felt the hurt from the higher stocks number.
If we can survive this weekend's 90+ degree highs, next week will offer some reprieve from the heat with highs in the 70s and 80s. Some scattered chances for rain are forecasted over the next few days, with the best chance hanging in there early next week. High winds are expected for several days with gusts on Saturday expected to touch 40 mph.
The Minnesota Vikings, who came back from a 33-0 deficit to beat the Indianapolis Colts in 2022.