Weekly Commodity Market Update

Brownfield’s Weekly Commodity update featuring former OSU Extension Ag Economist Ben Brown.

This Week’s Topics:

  • Market recap
  • U.S. grain stocks adjustments
  • U.S. harvest
  • Corn and soybean storage
  • Reports to watch

Market recap (Changes on week as of Monday’s close):

  • December 2023 corn up $.07 at $4.88
  • December 2024 corn up $.08 at $5.17
  • November 2023 soybeans down $.20 at $12.77
  • November 2024 soybeans up $.06 at $12.67
  • December soybean oil flat at 57.43 cents/lb
  • December soybean meal down $15.50 at $374.30/short ton
  • December 2023 wheat down $.25 at $5.64
  • July 2024 wheat down $.12 at $6.31
  • November WTI Crude Oil down $2.38 at $87.24/barrel

Weekly Highlights

  • For the most recent week of data- US crude oil stocks were down (-91 mil. gals) while US gasoline (+43.1 mil. gal.), Distillate (16.7 mil. gal.) and ethanol (16.7 mil. gal.) were all up.
  • Ethanol production rebounded to 297 million gallons produced on the week using an estimated 99.9 million bushels of corn.
  • US Ag Export sales were up for most commodities week over week including corn, soybeans, grain sorghum, and all wheats. US wheat sales were bullish coming in above pre-report estimates.
  • It was the third consecutive week producers and merchants decreased their net short in Chicago futures and options positions by more than 40%- this week 49%. Producers and merchants also reduced the net long in soybeans for the fourth consecutive week.
  • Managed money traders of Chicago commodities were mixed. They were net buyers of wheats and net sellers of corn and soybeans.
  • Weekly ag export inspections were down week over week for corn and wheat, but up week over week for soybeans and grain sorghum. All were within pre-report trade expectations.
  • US Grain stocks on September 1 were all within trade expectations but toward the top end for soybeans and below the average trade guess for corn. Both corn and soybean stocks were down from September 1, 2022.
  • The quarterly Hogs and Pigs report showed that there were 74.3 million hogs and pigs in the US- up slightly from last September.
  • Soybeans crushed for crude oil in August was 169 million bushels- down from 183 million in July, 175 million last August and pre-report expectations of 171.6 million bushels.
  • Corn crushed in August totaled 490 million bushels- below July 2023 but up 1% from August 2022. Corn for fuel alcohol at 443 million bushels, was down 3% from July but up 3% from last August.
  • US corn harvest is now 23% complete with corn crop conditions showing some slight improvement as combines roll along. Weekly increases were pretty consistent across the country.
  • US soybean harvest is now 23% complete up 11% week over week. Conditions improved on the week after declining last week.
  • 40% of the Winter wheat crop has been planted so far- slightly ahead last years pace but behind the average pace.

Leave a Reply

Your email address will not be published. Required fields are marked *