Morning Comments (RJ O'Brien)

Morning Grain Comments - July 19 2024

Grains & soybean markets are higher at the morning break.  Soybeans, meal, and wheat are trading at or near their highest levels since Monday underpinned by this week’s stronger South American values (soy) and international wheat purchases (soy and wheat).  Corn is higher but has not even gotten back yesterday’s losses.  US weather remains no concern and chatter yesterday regarding 185+ US yield potential in the US weighed heavily. 

Market Headlines:

• At 8AM, the USDA announced the sale of 105K tons of 24/25 meal to an unknown destination.
• China faces soybean glut as peak US export season nears.
• Ukraine's grain harvest reached 13.8 million metric tons, but forecasts predict a potential 20-30% decline in late crop yields due to extreme heat.
• The condition of French soft wheat crops fell to an eight-year low, with only 52% rated as good or excellent, and the harvest progress significantly behind the five-year average (14% vs. 43%).
• Corn made up 48.7% of Japan’s feed ration in May, up from 48.4% in Apil and 47.0% in May 2023.  
• Tunisia's state grains agency bought 100K tons of feed barley in a tender.
• The US generated fewer ethanol blending credits in June (1.212 bln) compared to May, while biodiesel blending credits saw a slight increase (735 mln), according to the EPA.
• Malaysian palm oil futures increased for the fourth consecutive session, closing 0.58% higher and marking a 1.15% weekly gain.