9/8/2023
Sep 08, 2023
Very quiet and subdued action to end the week and we chopped sideways into the weekend. Mild ranges of 6 cents in corn and 12 cents in soybeans were traded after the morning break. The final weekly net export sales report for the 2022/23 marketing year showed a net cancellation of 15k tonnes of corn and soybeans exceeding expectations with 156k tonnes sold. Current new crop corn sales on the books are the 4th lowest, and soybeans 5th lowest, over the past decade in terms of starting a marketing year. South America continues to gain market share. U.S. corn has not been competitively priced in 2023 and the U.S. crusher has been mostly successful at outbidding exporters for soybeans. Brazil simply has an abundance of grain that is readily available at lower cost and the U.S. exports have been used to just fill the voids. Analysts do not see much for fireworks in terms of the old crop balance sheet changing in next week's report with minimal changes to the 2022/23 ending stocks predicted. What they are looking for the USDA to do is make another trim on the 2023 crop yields with a 1.6 bu/ac cut in corn and a 0.7 bu/ac reduction in soybeans.
