Weekly Market Update 3-28-24

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

Trivia

1. What is the term for a group of flamingos?

2. What year was the very first model of the iPhone released?

Answers at the bottom.

Market News

Export Inspections: This week, corn inspections showed that 48.3 million bushels were shipped, with Mexico, Colombia, Japan, and South Korea being the top destinations. However, export inspections for wheat from the U.S. remained slow with a total of 11.6 million bushels loaded, the slowest week since late January. Mexico continues to be the top destination for wheat. HRW was loaded from the Gulf to the Dominican Republic, PNW to Japan, and railcars to Mexico. Also, 28.2 million bushels of soybeans were shipped this week, which was better than the previous week and within estimates. Milo numbers were lower, with only 200,000 bushels shipped compared to 7.6 million the previous week, and China was the only destination.

Export Sales: Corn exports were at 47.5 million bushels last week, with Mexico as the largest buyer. However, sales are behind schedule to meet the USDA's estimates. New crop sales were only 5 million bushels, which was historically lower than previous estimates compared to the same time. Wheat reported sales were better than expected at 12.5 million bushels, led by sales to Taiwan and S. Korea. 7.8 million bushels were reported for new crop sales, and soybeans were meh, not meeting estimates reporting 9.7 million bushels; however, there were 4.4 million bushels in new crop sales. 3.1 million bushels for Milo currently VS 400,000 the previous week, and no new crop contracts.

USDA Recap: Markets went on a run after today’s USDA Prospective Plantings and Grain Stocks report. The biggest surprise was where USDA pegged 2024 corn acres, coming in on the low end of estimates at 90.0 million acres, versus an average trade guess of 91.0 million. This is down 5% from last year. Planted acreage is expected to be down or unchanged in 38 of the 48 estimating states. Despite a reduction in acres, issues remain on the demand side of the balance sheet. Bean acres were right as expected, coming in at 86.5 million acres, a one million acre reduction from the Ag Forum numbers earlier this year. This is up 3% from last year, with planted acreage up or unchanged in 24 of the 29 estimating states. Wheat was slightly above trade estimates at 47.49 million acres, with the big jump coming from spring wheat and durum acres. Milo planted acres were estimated at 6.395 million acres, down 11% from last year. As for the stocks side of this report, all three major grains saw larger stocks than last year. There weren’t really any huge surprises here, with corn about a million bushels lower than the average trade guess, and beans and wheat slightly higher. With this report in the rear view mirror, the market will now turn to talking about weather and yield until we get to the June report.



Weather

After some cold temperatures to start the week, we are warming back up headed into the holiday weekend. Daytime highs look like they’re going to be hanging out in the 60s and 70s for the coming week, with nighttime lows in the mid- to upper-30s. It’ll be mostly sunny with some breeze through the weekend, with a chance for showers on Monday and back to sunshine for the rest of next week.

Good Friday/Easter Trading Schedule:
Thursday, 3/28—No Overnight
 Friday, 3/29- No Day or Overnight
 Sunday, 3/31- Reg Overnight Session
Monday, 4/1- Reg Session

 

Trivia Answers

1.  Flamboyance.
2.  2007.