A fairly positive end to the week for grains
Soybeans found support in the strong demand for soybean products. Both soybean oil and soybean meal were higher on Friday. Ending stocks are estimated at the lowest levels in several years and crush margins have been profitable. While export sales are up 4% year-over-year, shipments are still down 8% from 2021. Sales to China are also higher and the USDA reported a sale of soybeans to unknown destinations, which usually is switched to China of 4.6 mb. The market is also watching the weather in South America, and while most of Brazil has had great weather for growing soybeans, there are concerns as the southern part of the country and Argentina remain dry.
Corn finished Friday higher and secured a solid gain for the week. This is an impressive feat, especially as there are a lot of negative factors that have moved in. Slow export sales (which are running about 50% behind year-ago levels), sliding ethanol margins and reduced demand, and fairly positive growing conditions in much of Brazil. However, southern Brazil and Argentina are still battling dry weather and a less-than-stellar crop rating.
The wheat complex ended the day higher as concern over winterkill rose. Sub-zero temperatures blanketed the country, and a lot of those areas are without snow cover putting the winter wheat crop at risk. Supplies of wheat are tight, and reports that the turmoil in the Black Sea region has contributed to the reduction of winter wheat planting create the potential for even tighter supplies. DTN reports the USDA is expected to tighten both U.S. and global wheat supplies this winter.