Weekly Market Update 2-1-2024

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

Trivia

1. Originally, Amazon only sold what kind of product?

2. In what year was the internet opened to the public?
    

Answers at the bottom.

Market News

 Trouble in Jordan: Iran-backed drone attack Targeted American troops in northeastern Jordan near the Syrian border, resulting in three deaths and several injuries. President Biden has indicated that the US will respond to the attack. The recent event has increased tensions in the Middle East, leading to concerns about potential conflicts and disruptions in supply. At the same time, the grain markets were unchanged. Crude oil and its products experienced losses at the start of the week despite these geopolitical concerns. However, the US oil rig count, as per Baker Hughes, did indicate a rise in the number of rigs on Friday, with the total count reaching 499.

Off to a good start On Tuesday: there was a sudden change in the prices of all commodities, but there is no clear reason behind it. It's difficult to predict future prices based on these patterns, as they are unreliable. However, the weather can have an impact on today's trading. Currently, there are no headlines or rumors about exports that could impact prices. The only tangible news is about the weather in Argentina, where hot and dry conditions are present, which could affect the growth of corn and soybeans in vital areas central and southern parts of Argentina. This kind of weather is not ideal and can lead to revised estimates of production, if there is no adequate rainfall. Unfortunately, the forecast predicts no rainfall for the next five days.

Export Inspections / Sales: Corn Inspections were better this week than the week prior, with 35.5 million bushels shipped. These bushels shipped fell close in line with the 5-year average for this time of year and helped to keep the U.S. on track to meet the USDA’s export goal. Wheat inspections slowed overall, with 9.7 million bushels shipped and under the projected estimate. Soybeans shipped 32.7 million bushels, down from the week prior but hitting between estimated. Milo inspected 2.5 million bushels for the current week. Export corn sales this morning showed a stronger week of sales this past week, with 47.5 Mil Bu sold for 23/24 delivery and then 5.7 Mil Bu sold for 24/25 delivery. Japan swooped in and took the title of biggest buyer this past week, with Mexico and South Korea not too far behind them. Wheat sold 11.9 million bushels, the bare minimum of an estimated. There were 600,000 bushels sold for 24/25 delivery. Soybeans were disappointed overall as low expectations were met in beans selling 6.0 million bushels this week. Milo shipped 2.8 million bushels; China is the biggest buyer this week for milo.

Weather

Sunshine in the forecast. Looking ahead to this week's weather, we can expect a wet weekend with chances of more precipitation on both Saturday and Sunday. Temperatures will be in the 50s in areas with a 30% chance of rain. For the upcoming week, we can expect highs in the upper 50s to lower 60s and lows in the 30s and 40s. Wind speeds will be around 10-15 MPH during the weekend and ranging from 10-20 MPH later in the week.

Trivia Answers

1. Books
2. 1993