FI Morning Grain Comments 12/22/22

Dec 22, 2022







PDF attached

 

Good
morning.

 

USD
was down 7 points earlier, WTI crude up about $0.95, and US equities lower.
Black
Sea shipping concerns are supporting wheat. Corn turned unchanged to moderately lower before the electronic close. News was light. The soybean complex is under pressure led by soybean oil but unfavorable weather for the US and Argentina is limiting losses
for soybean meal and soybeans. USDA export sales favor soybean meal over soybean oil. There were no surprises for export sales for soybeans, corn and wheat.

 

 

 

Weather

Temperatures
dropped below zero across a good portion of the US Great Plains Wednesday into Thursday and the Midwest will see the arctic cold blast today into Friday. US temperatures will remain below normal over the next 5 to 7 days. US snow coverage across the Great
Plains expanded a touch over the last 24 hours. The mainland US area covered by snow was 44.3%. For the Midwest, snowfall today will be critical to improve coverage today, northeast areas Friday through Saturday and northwest areas Sunday.  For the Great Plains,
light snow should favor eastern KS today before turning drier Friday through Monday. Brazil’s Mato Grosso, Goias, Minas Gerais, Sao Paulo, and Bahia will see rain through Monday. RGDS will see rain Sunday through Monday.  Argentina’s weather outlook is unchanged
with light rain developing today through Saturday before turning dry through early next week.

 

Map Description automatically generated

 

US
snow coverage across the Great Plains expanded a touch over the last 24 hours.

Map Description automatically generated

 

 

World
Weather, INC.

The
significant surge of arctic air is now moving into the central U.S. and will spread into the eastern U.S. as well Thursday into Friday. The significant cold, strong winds, and blizzard conditions in the Midwest will still lead to a huge increase in energy
demand Thursday into this weekend. Temperatures will be well below average in all crop areas east of the Rocky Mountains Thursday into Sunday before much warmer weather moves in. Concern remains of winterkill in the southwestern part of the Hard Red Winter
Wheat Region, such as the Oklahoma and Texas Panhandles and western Oklahoma, due to subzero Fahrenheit temperatures in the mornings Thursday and Friday with very little to no snow on the ground. Snow is expected to protect crops in most other parts of the
region though.