FI Morning Grain Comments 12/21/22

Dec 21, 2022







PDF attached

 

Good
morning.

 

Main
CBOT agriculture markets open Tuesday morning after Christmas. Other selected markets do open Monday night.
https://www.cmegroup.com/tools-information/holiday-calendar.html

 

US
winter starts today. USD was down 2 points earlier, WTI crude up about $1.63, and US equities higher.
The
soybean complex and grains are higher supported by dry weather across southern South America and a surge in covid cases in China. Argentina is still slated to see two rain events over the next week but amounts will not be great enough to end the drought. Unusually
cold temperatures pose a risk for US winter grain damage over the next week. Lack of snow coverage stretches across a majority of Kansas, Texas and Oklahoma. Offshore values were leading SBO lower by about 81 points earlier this morning and meal $1.20 short
ton lower. A Bloomberg poll looks for weekly US ethanol production to be down 20,000 thousand barrels to 1041k (1023-1059 range) from the previous week and stocks down 20,000 barrels to 24.405 million.

 

 

Weather

Weather
models are now predicting less than expected snow accumulations across the Great Plains and Midwest for today into Saturday. The jet stream may now keep the bulk of the rain bias southern US. The morning weather forecast turned slightly unfavorable for the
US Great Plains. Midwest forecast is mostly unchanged. South America’s weather forecast is unchanged.

 

Map Description automatically generated

 

World
Weather, INC.

WORLD
WEATHER HIGHLIGHTS FOR DECEMBER 21, 2022

  • Extremely
    cold temperatures impacting central parts of North America during mid- to late-week this week will bring all kinds of problems
    • Blizzard
      conditions are likely from the eastern U.S. Plains to the Great Lakes region tonight night into Friday
    • Snow
      will fall as far south as the Tennessee River Basin
    • Extreme
      low temperatures in the -30s and -20s are likely in the northern Plains
    • Subzero-degree
      low temperatures will occur southward to the Texas Panhandle, central Oklahoma, central Illinois and northern Indiana
    • Freezes
      will occur southward to South Texas and the entire central Gulf of Mexico Coast