Weekly Market Update 1/5/23

Jan 05, 2023












Here is your weekly market update from the Garden City Co-op Grain Origination Team.

Trivia

  1. How many properties are on a Monopoly board?

  2. What color is a giraffe's tongue?

Answers at the bottom.

Market News​

  • Bulls have been beaten, battered, and bruised to start off the new year. The commodity sector has seen losses so far to start the new year on a short week. Fund liquidation has been the main culprit for the pitiful week so far. Add to that the Dollar is testing weekly highs and weighing on grains. Soybeans were the big loser on the day with forecasts in Argentina seeing some big rains in the 8-10 day look ahead. The South American bean crop is falling slightly but from a very high top. We have a ways to go for a “shrinking” crop size to matter. Weekly export inspections were nothing to write home about with corn slightly over trade estimates and soybeans and wheat failing to meet low end expectations. Export sales is delayed until Friday due to the short week. Next Thursday will have some excitement with the USDA’s release of the January WASDE, quarterly stocks, crop production summary for 2022, and winter wheat seedings.

  • ​In the geopolitical arena Russia has ramped up its efforts against Ukraine with Ukraine not backing down and pleading for more tanks. Russia and Turkey are saying Ukraine will have to accept territory loss if they want peace. China’s factory activity is plunging for the 5th straight month, combined with the US and Europe also seeing weakening economic activity feeding markets negative data. Not a great start to the new year. Chinese government has increased export quotas for refined oil products, signaling expectations of poor domestic demand.

  • The Dow for the week is experiencing losses down 361.12 points from Tuesday’s high overall for today the DJIA is down 322.09 points sitting at 32,947.68. The S&P 500 is in a similar pattern to the Dow this week down 41.8 points on the day and sitting at 3,811.17 just off of the weekly lows seen on Tuesday. I feel like a broken record as I’m typing, the NASDAQ overall is down on the day 135.18 points and sitting at 10,323.58 well off the high of the week 10,586.58. All 3 of these major indices have a very similar and negative chart pattern for this week.

Weather

Warmer temperatures are on the way over the next 10 days with many days in the 50s and winds calm majority of days, around 10-15 mph. Moistures remains to be an after thought with little to no chances over the next 7-10 days.

Trivia Answers

  1. 28

  2. Purple