FI Morning Grain Comments 05/08/23

PDF attached

 

Good
morning. 

 

Outside
markets are supporting most US CBOT agriculture futures. USD was down 7 points and US equities mixed. Crude oil rallied more than $1.62 earlier. This afternoon we look for a good jump in soybean and corn plantings and an improvement in US winter wheat conditions.
Wheat is higher on Black Sea shipping concerns. Ukraine blamed Russia of stopping Black Sea incoming ship registrations. Meanwhile negotiations over the grain deal resumed today. Look for headline trading to continue to dominate price direction this week.
Most of the US will see rain one time or another this week, lighter bias the west-central Plains. Texas will see most rain over the next 7 days. Brazil’s corn area will dry down this week. Corn is mixed on lack of direction.
Short covering and higher soybean oil is lifting soybeans higher.
US CPI will be updated on Wednesday. Several reports are due out this week starting with weekly USDA reports today followed by StatsCan stocks on Tuesday. USDA and StatsCan trade estimates should be out as early as 11 am today. 

 

 

Fund
estimates as of May 5

 

 

 

 

Weather

 

World
Weather Inc.

WORLD
WEATHER HIGHLIGHTS FOR MAY 8, 2023

• Excessive
  heat and dryness stressed coffee, sugarcane, corn and other crops in mainland areas of Southeast Asia during the weekend
• The
  heat will be reduced as showers and thunderstorms increase this week
• China
  experienced flooding rain in southern rapeseed and rice production areas causing some damage to crops in northwestern Fujian and Jiangxi where more than 28 inches of rain fell since Friday
• Yunnan,
  China’s drought may be eased late this week and into the weekend as needed rain falls
• Xinjiang
  China’s cotton and corn areas were unseasonably cold during the weekend and some warming is expected this week
• Rain
  is advertised in northeastern Algeria and northern Tunisia this week
• Moderate
  to heavy rain will occur from Italy and the western Balkan Countries to France and the U.K. in the next week to ten days
• Spain
  will remain drier biased except for showers along the central east coast
• A
  part of northern Kazakhstan and neighboring areas of Russia will get rain this week easing some recent dryness, although more will be needed in parts of the region
• Most
  U.S. crop areas will get rain at one time or another during the coming week; this includes West Texas, many hard red winter wheat areas (although light in the west-central high Plains), the northern Plains and southeastern Canada Prairies
• Argentina’s
  rainfall in the central and northeast during the weekend was welcome and drying will now return
• Brazil’s
  Safrinha corn areas continue to dry down
• Australia’s
  rainfall will be greatest near the coasts this week as they were during the weekend
• U.S.
  southern Plains will remain warm this week until rain begins
• Warm
  weather will overspread the Midwest later this week as well

Source:
World Weather, INC.

 

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