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BQC Morning Comments Dec 30.24

CLOSING COMMENTS

 

 Ag Fundamentals:

Argentina is seeing daily temperatures above 90 degrees and the recent showers did not cover all growing areas. Soil Moisture levels are expected to worsen over the next few days. It is raining in Argentina today through New Years Day, then will only see one other rain event between now and mid-January. US soybean export sales were below estimate range expectations and the bean market continues to rely on domestic demand.  Crush margins at the end of last week were calcing close to 1.17, near 6 month lows. There was a 23K MT soybean oil flash sale to India this morning. Export sales last week were positive for corn, reported over 100K MT higher than the top end of the estimate range. Corn export and ethanol demand continue to be very positive for corn values. Ethanol production for week ending 12/20 was recently reported at 1.107 million barrels per day which was just slightly higher than the previous week.

Weather:

How are supply chains effected if it snows a foot in Atlanta? It still may be too early to ask that question, but with recent forecasts showing moisture pulling up from the gulf potentially meeting a flurry of cold air coming down from the northern plains, so not impossible. South of Tennessee, they do not possess the appropriate amount of salt, snow plows, etc to fight a potential blizzard. 

The Next 7 Days of Days of Snow show the central Midwest will get up to 4 inches in some areas. More snow is expected to follow in mid January.

US Snowfall Map

Colder than Normal Weather is expected to seep into the center of the US and leak further into the mid south and southeast. Atlanta may receive some snow this year.

US Temperatures Map

Export & World News

India bought 23K MT of soybean oil from private US exporters this morning. Bangladesh bought 50K MT of rice in an international tender. Jordan purchased 120K MT of barley. 

Malaysian palm oil futures were down 72 ringgit overnight, at 4552.

Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)

>>Interested in more commentary by Joe Mauck?  Go HERE

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