Weekly Market Update 2-29-2024

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

Trivia

Answers at the bottom.

Market News

SA Crop News: Crops in various regions of Mato Grosso, Brazil's largest farm state, soybean production in Brazil has been cut due to adverse weather conditions. A crop tour has revealed that the areas planted between the beginning of September and mid-October in the north, west, middle-north, and southeast regions were the most affected by high temperatures and low rainfall. These regions correspond to approximately 40% of the total state's crops. As a result, the average yield for Mato Grosso was pegged at 52.5 bags per hectare, which is 17.7% below last year's harvest; Argentina's corn crops have been experiencing higher-than-usual temperatures since around mid-January, which has led to less-than-ideal water levels. However, they received rain within the second week of February and are still expected to hit a record level this corn season. High temperatures across farmlands also impacted Argy's soybean crop at a susceptible time during the beginning stages of the soybean crop. Rain is needed in the coming days and weeks to secure the recovery and potential of the corn and soybean crop.

Export inspections: Corn reported that there has been decent movement of physical grain to meet the projections set by the USDA for this year. However, it's essential to maintain this pace. According to the report, 48.9 million bushels of corn have been inspected and shipped, which is better than the 10-week average. Mexico is the primary destination for corn exports, followed by Japan. However, China is still not in the picture. Soybean shipments were within the estimated range, with 35.8 million bushels shipped. China took the majority of the shipments, followed by Mexico. Wheat inspections were better than expected, improving over the previous week but still behind the USDA pace. HRW loadings were minimal, with railcars to Mexico leading the way and PNW loadings to Japan and Venezuela from the Gulf. Milo inspections were 5.0 million bushels compared to 12.4 million bushels the previous week, and China was the primary destination.

Export Sales: Corn sales for the week were 42.6 million bushels, compared to 32.3 million bushels last week, consistent with historical levels for this time of year. However, the corn market needs to pick up pace for the USDA estimate, and 6.5 million bushels of new crop sales were reported. Wheat sales were in line with trade estimates, and HRW remained steady. Japan and Mexico were the biggest buyers, with 12.0 million bushels sold, including -0.2 hundred thousand bushels in new crop sales. Soybeans had 5.9 million bushels sold with no new crop contracts, while Milo performed well with 17.5 million bushels sold, surpassing the pace needed with no new crop sales.

Weather

After experiencing an excellent turnaround from the cold weather, we came into this week only to realize we are still in February. We have had a taste of some nice spring weather, but today, we are expecting highs in the upper 50s. We will continue to warm up over the weekend, with temperatures in the mid-range 70s and into the beginning of the week. However, temperatures will settle in the 60-degree area throughout the start of the week, with lows in the 30s, still a little on the cooler side. There is also a possibility of some precipitation here towards the end of the week in the 20% chance area.
 

Trivia Answers

1.  Dan Albone in 1901.
2.  CC means cubic centimeter.