U.S. exports, ethanol production build | Weekly Commodity Market Update

Brownfield Ag News

This week Will and Ben breakdown the future role of U.S. crops in the Chinese export market.

Market recap (changes on week as of Monday's close):

» September 2024 corn up $.10 at $4.00

» December 2024 corn up $.11 at $4.15

» September 2024 soybeans up $.31 at $10.64

» November 2024 soybeans up $.28 at $10.68

» September soybean oil flat 2.8 cents at 46.22 cents/lb

» September soybean meal up $11.70 at $325.80/short ton

» September 2024 wheat up $.16 at $5.48

» July 2025 wheat up $.31 at $6.08

» October cotton down .82 cents at 70.04 cents/lb

» December cotton down 1.77 cents at 70.67 cents/lb

» September WTI Crude Oil down $2.53 at $78.41/barrel

Weekly highlights:

This week’s energy report showed lower crude oil stocks with higher gasoline and distillate fuel stocks.

US ethanol production increased sharply to 325 million gallons on the week, just 1 million gallons below the all-time weekly record. Ethanol stocks decreased 18.6 million gallons despite the near record production.

The July 1st cattle on feed report show all US cattle on feed at 100.5% compared to last year- below the average trade estimate of 101.1%. Cattle placements of 93.2% were well below the 97.2% expected with marketings at 91.3% just slightly lower than the 91.7% expected.

Collectively across the grains and oilseeds, managed money futures and options positions continue to build on a record net short position. Traders reduced their record net short corn positions 10,587 contracts while expanding the net short in soybeans to -185,750 contracts- a record.

Weekly export sales of US grains and oilseeds were mixed to disappointing. Corn sales for 2023/24 of 17.2 million bushels were bearish below all expectations. Soybean sales of 1.3 million were in the middle while all wheat sales of 21.3 million were at the top end of the range.

Weekly grain and oilseed export inspections were neutral for corn at 38.2 million bushels, soybeans at 12 million, and grain sorghum at 2.7 million, but bearish for combined wheats at 8.7 million bushels. SRW, HRS, and White wheats were all sharply lower than recent volumes.

US corn conditions declined one point on the week to 68% good to excellent while national soybean ratings remained unchanged at 68%. The trade was expecting unchanged conditions on the week.

US cotton conditions increased to 53% good to excellent- up from 45% last week. The composite jumped to 339 and compares to 333 on average.

The spring wheat crop was unchanged at 77% good to excellent compared to 49% last year and 54% on average.

Topics:

» Market recap

» Soybean outlook

» Chinese exports

» Brazilian competition

» Strong ethanol production

» Reports to watch

Connect with Brownfield Ag News:

» Get the latest ag news: https://www.brownfieldagnews.com/

» Subscribe to Brownfield on YouTube: https://www.youtube.com/@BrownfieldAgNews

» Follow Brownfield on X (Twitter): https://x.com/brownfield

» Follow Brownfield on Facebook: https://www.facebook.com/BrownfieldAgNews

About Brownfield Ag News:

Brownfield Ag News is your trusted source for reliable agriculture news, market trends, weather updates, and expert interviews. Get comprehensive coverage and stay ahead in the ever-evolving agriculture industry.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.