Corn and soy in the green ahead of WASDE. Thursday, February 8, 2024
March corn is currently up 2½¢.
March soybeans are up 15¼¢.
CBOT wheat is down 7½¢. KC wheat is down 10¼¢. Minneapolis wheat is down 8¾¢.
Near the end of the overnight trade, The Brock Report said, “Soybean futures [are] bouncing modestly on support from a drop in Brazil’s official crop estimate, which was offset by another poor weekly U.S. export sales total. Corn futures have been unable to rally despite a lower Brazilian crop estimate as they have felt pressure from renewed weakness in wheat futures, which have given back their Wednesday gains under pressure from a strong dollar and continued poor export demand for U.S. wheat.”
Earlier this morning, USDA released the weekly Export Sales report. Corn and wheat export sales were within the expected range but soybeans fell below expectations. USDA also announced a new export sale this morning. Colombia is buying 200,000 metric tons of corn for delivery during the 2023/2024 marketing year.
Later this morning USDA is expected to release the February World Agricultural Supply and Demand Estimates (WASDE) report. Arlan Suderman, chief commodities economist for StoneX, says there are “some significant differences” between what USDA is expected to report and what Brazil’s agricultural agency Conab released this morning, adding the market tends to trade on USDA numbers over Conab.
“USDA probably will not go as low as Conab today, as it is more conservative than Conab in making adjustments. It doesn’t like to bounce them back higher later if it overshoots to the downside early. Conab pegged Brazil’s total-corn crop at 113.7 mmt, down from 117.6 mmt last month, and below USDA’s January estimate of 127 mmt. The average trade guess for today’s USDA estimate is at 124.3 mmt.”
Live cattle are up $2.15 this morning. Feeder cattle are up $2.80. Lean hogs are down 85¢.
Crude oil is up $1.65.
S&P 500 futures are down 5 points. Dow futures are down 25 points.
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