Weekly Market Update 2-8-2024

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

Trivia

1. The Kansas City Chiefs were initially known as which team? 

2. Which athlete has won the most Olympic medals?

Answers at the bottom.

Market News

Export sales: This morning's data for corn was not very impressive, as it showed an increase of only 500K bushels compared to last week. Moreover, it fell significantly short of the numbers we had during last year’s time frame and the 5-year average. The reported 48.0 million bushels was not in line with our expectations. This puts the U.S. behind the pace by 22.6 million bushels to meet the current USDA target for the year, and this is coupled with the slow shipments that have been observed recently. Soybeans Meh is reporting 12.5 million bushels with 300,000 bushels NC sales. Export sales for milo were 2.4 million bushels. Wheat sold 13.9 million bushels.

Export inspections: During this week, the total amount of corn bushels inspected and shipped was 24.6 million. The top destinations for these shipments were Mexico, Japan, and Colombia. As for soybeans, the amount inspected and shipped exceeded the estimated number, reaching 52.4 million bushels. The primary destinations for this product were China, Mexico, and Germany. Additionally, wheat shipments exceeded the estimated amount, with 9.8 million bushels inspected. Mexico was the leading destination for this commodity. Finally, Milo shipments were on the lower side this week, with only 4.6 million bushels being shipped.

 WASDE expectations were muted; trade generally expects tighter corn and soybean stocks globally, with most of those cuts coming out of BRZ. Historically, the February report has been relatively quiet, given US production was “set” in January, and we now trade around demand. It is a slightly bearish report, but domestic changes are minor; soybeans take the biggest hit post-report-release. USDA estimates of BRZ crops do remain optimistic. Corn supply and demand update: Other FSI usage is down 10 million bushels, contrary to trade expectations, with exports unchanged. Global production and carryout are down 3.15 MMT due to a 3 MMT Brazil crop decrease. Bean exports decreased by 35 million bushels, leading to a 35 million bushel increase in carryover for 2023/24 to 315 million bushels. World carry-in for 2023/24 increased by 1.7 million metric tons, resulting in a carryover increase of 1.4 million metric tons, despite a slight decline in production due to a minor loss in Brazil. There is no significant change in domestic S&D for wheat, except for a 10 million bushel reduction in food use, which resulted in a corresponding increase in carryout. Production growing slightly and ending stocks decreasing somewhat for 2023/24.


 

Weather

Temperatures are expected to cool down, with a winter mix arriving over the weekend. The highs will be in the 40s, with lows mainly in the 20s. Precipitation is forecasted for Saturday evening, with rain/snow showers continuing until Sunday morning. The week will start cooler, but expect sunshine, with highs ranging from the 40s to 50s throughout the week.
 

Trivia Answers

1. Dallas Texans 
2. Michael Phelps