AgResource Weekly Newsletter, Jan 8
In this week’s newsletter, we take an updated look at the pace of world wheat trade.
Argentine Weather & Corn Yield
Record Argentine corn production is in jeopardy, but it’s difficult to quantify losses so far. Yield loss this year will be a function of too much, not too little rain which makes estimating yield potential more difficult. Most important is that the bulk of excessive rain & flooding has impacted areas a bit north…
Evening Weather Update
GFS Slightly Wetter in Central Brazil; EU Model Stays Dry at Midday: The midday GFS added scattered showers to Mato Grosso, Goias and Minas Gerais next week. However, the EU model held firm and maintains complete dryness across Central Brazil throughout the next 10 days. The EU has again been the better forecast performer. And…
Wheat Stays Firm; Egypt Seeks Supply for Late February
World wheat futures ended firm ahead of the closing of Algeria’s latest tender and as Egypt seeks optional origin supply for late Feb/early March. Egypt will see cheap US SRW offers and Gulf HRW pencils into Algeria. US wheat is working into world trade. Our thesis remains centered on improving US export demand. Our work…
Corn Ends Weak on Fund Liquidation
CBOT corn futures ended 2 cents lower. We’ve highlighted that the 2019 index fund re-balance includes the selling of grain futures. Otherwise, fresh input remains mostly positive. However, we do estimate that funds this evening are long a net 110,000 corn contracts. This compares to sizable short position held in early Jan in recent years.…
