Wheat Futures Prices Lower after WASDE Raised Estimates for All-Wheat Yield

Wheat futures fell Friday after the USDA WASDE report slightly raised estimates for all-wheat yield by 0.2 bushels per acre to 47.5 bpa this month. Supplies saw a modest increase, moving 2 million bushels higher to 1.783 billion bushels. Export estimates for 2022/23 improved 25 million bushels to 825 million. Two more ships carrying wheat and corn set sail from Ukrainian ports earlier today, which brings the total number of cargo ships navigating through the Black Sea up to 14 … Continue reading “Wheat Futures Prices Lower after WASDE Raised Estimates for All-Wheat Yield”

Soybean Futures Higher Despite WASDE Record Soy Output and Yield Estimate

Soybean prices volatility picked up Friday after the US Department of Agriculture WASDE signaled a record domestic soy output of 4.531 billion bushels. Soybeans fell as much as 2.3% to $14.1525 a bushel in Chicago before clawing back to close higher. USDA also raised its soy yield estimate to 51.9 bushels an acre, the highest ever and more than analysts expected. Prices reversed after the latest weather reports of severe heat and dryness since the report was compiled 12 days … Continue reading “Soybean Futures Higher Despite WASDE Record Soy Output and Yield Estimate”

Corn Futures Rally After WASDE Cuts Corn yield Forecast

Corn prices rose Friday after the WASDE report cut its forecast for corn yields more than expected by analysts to 175.4 bushels per acre this year, lower than consensus 175.9 and 177 bpa in the previous forecast. USDA forecast higher corn yields than last year in Illinois, Minnesota and South Dakota, but below year-ago levels in Indiana, Missouri, Nebraska and Ohio. On Thursday, commodity funds were net buyers of all major grain contracts, including corn (+4,500). FranceAgriMer puts this year’s … Continue reading “Corn Futures Rally After WASDE Cuts Corn yield Forecast”

Tyson Foods Chickens Came Home to Roost as Operating Margins Contract

Tyson Foods is a stock known for not missing earnings, in the Q3 (June), quarter it did. Adjusted operating margins tell the story as they contracted by 340 bps yr/yr to 7.4%. While consumer prices for beef, chicken, and pork boosted revenue the input costs more than offset the pricing benefits. TSN adjusted their prices given their products have a degree of price elasticity. TSN did reaffirm its FY22 revenue guidance of $52-54 billion as well as its adjusted operating … Continue reading “Tyson Foods Chickens Came Home to Roost as Operating Margins Contract”

Soybean Support from Chinese Buying and Ongoing Dry Weather Threatening Yields

Soybean prices rallied Friday on Chinese buying of U.S. soybeans and fears that ongoing dry weather will threaten yields. Soyoil rose 3% Friday giving support. For the week Soybeans sill closed down 1.68%, holding most of last week’s biggest weekly gain in 22 years where prices rose 12.41%. Private exporters reported two more large soybean sales, both for 4.9 million bushels to USDA Friday. With the current supply and demand situation in the U.S. relatively tight on soybeans, we need … Continue reading “Soybean Support from Chinese Buying and Ongoing Dry Weather Threatening Yields”

Wheat Futures Prices Sell Off Continued as Consumption Collapses and First New Ukrainian Shipments

Wheat futures fell on Wednesday to a six-month low but gained traction and rose sharply toward the end of the week but still closed down 4% for the week. The selling came as newly harvested supplies met the current global demand. Global wheat consumption is on track for its biggest annual decline in decades as record inflation has forced consumers and companies to use less and replace the grain with cheaper alternatives. Wheat felt the pressure from the first grain … Continue reading “Wheat Futures Prices Sell Off Continued as Consumption Collapses and First New Ukrainian Shipments”

Corn Futures Best Week Since early March Rising 10% with Hot, Dry Conditions in France

Corn prices closed off their highs Friday, both September corn and December corn were up 1¢ after being up 14c in the morning. Corn closed the week with gains of more than 10%, the best weekly performance since early March. On Thursday, commodity funds were net buyers of corn by +11,000.  The weekly Crop Progress report next week is expected to show crop ratings stable if not down 1% to 2%. With the current supply and demand situation in the … Continue reading “Corn Futures Best Week Since early March Rising 10% with Hot, Dry Conditions in France”

Wheat Futures Prices Soften after Zelenskiy Visits Port Near Odesa.

Wheat prices faltered again this week continued to slide lower, with some contracts down nearly 2% Friday. September MGEX spring wheat futures lost 15.75 cents to $9.1225. On Thursday, commodity funds were net buyers of CBOT wheat (+9,000) contracts. Wheat felt the pressure from the Ukraine and Russia deal brokered by the UN. The deal is for the black sea reopening with Ukrainian wheat, a possible bottleneck in ramping up Ukraine grain exports is damage to the transportation infrastructure which … Continue reading “Wheat Futures Prices Soften after Zelenskiy Visits Port Near Odesa.”

Soybean Complex has Biggest Weekly Gain in 22 Years on Weather and Argentine Hoarding.

Soybean prices saw the biggest weekly gain in 22 years. Soybean oil rose 12.85%, Soybeans rose 12.41% and Soybean Meal rose 11.34% for the week. Soybeans got support from the weather with a hot and dry forecast for the first 10 days or so of August. Support came with Argentine farmers not selling soybeans due to inflation concerns. Argentine farmers would rather store soybeans versus pesos in the bank in their high inflation. The weekly Crop Progress report next week … Continue reading “Soybean Complex has Biggest Weekly Gain in 22 Years on Weather and Argentine Hoarding.”

Soybean Price Support from August Weather Outlook and China and EU Crush Volumes

Soybean prices on Friday swung with grains Friday on the Russian Ukraine port deal in a range of nearly 55 cents today. August weather outlook lends support to futures.  Futures struggled to keep their morning gains with August Soybeans settling at $14.32 ½, up 13 ½ cents on the day.  China’s weekly soybean crush dropped below trade estimates as the result of declining feedstocks and slow soybean meal demand. The EU’s June crush volume fell 12% to the lowest level … Continue reading “Soybean Price Support from August Weather Outlook and China and EU Crush Volumes”