Weekly Ag Markets Update - Monday, Dec. 21

Wheat: Winter Wheat markets were lower in reaction to news that the Russian government is looking to tame food inflation inside the country by taxing and issuing new export quotas on Wheat along with some other agricultural products. Minneapolis Spring Wheat contracts closed higher.  US prices moved very close to international prices and US markets searched for new demand. Export demand has started to improve with the close price relationships. World prices have held steady or worked a little higher even with additional supplies available to the market as Russian prices remain elevated. Australian supplies have increased as its harvest is moving forward.US weather is mixed with still dry conditions in the western Great Plains even though a few areas got some snow. Some precipitation was reported in the eastern Great Plains and in parts of the Midwest. Parts of eastern Ukraine and southern Russia remain dry.

Weekly Chicago Soft Red Winter Wheat Futures

Weekly Chicago Hard Red Winter Wheat Futures

Weekly Minneapolis Hard Red Spring Wheat Futures

Corn: Corn was higher and broke out to the upside on the daily and weekly charts. Oats moved lower as the sharp rally came to an end. New export demand was noted from China by USDA in the weekly export sales report. Export demand has held strong as US Corn is about the cheapest feed grain in the world market. Domestic demand has been less due to reduced demand for ethanol processing and questions about feed demand. It has rained in parts of Argentina and in much of Brazil in the past week. Drought could develop in Brazil and Argentina despite the rains this week as the overall weather patterns have been dry and as dry weather is in the forecast for Argentina and southern Brazil. The drought is especially serious in South America for the first Corn crop but the second crop could also be affected due to late planting in central and northern Brazil. Dry weather has delayed the Soybeans planting and that will delay the second Corn planting later. Farmers will not plant if it gets too late in the year as the rains will shut off before the crop gets mature.

Weekly Corn Futures

Weekly Oats Futures

Soybeans and Soybean Meal: Soybeans and Soybean Meal closed higher on better demand for US Soybeans and despite rains in South America. Futures were able to move above 12.00 per bushel and a new leg higher has started on the daily and weekly charts. The weekly export sales report was above expectations and the NOPA crush was very strong.US ending stocks estimates now are very tight and are likely to get even tighter as tie goes on. China continues to buy in small amounts each day but has canceled and switched some contracts made to unknown destinations. Production potential is being threatened in South America due to the lack of rainfall. The situation is most serious in central and northern Brazil but has improved in southern Brazil and Argentina due to recent rains. These rains are leaving southern Brazil and Argentina now and will move to the north. Southern Brazil and Argentina will now turn warm and dry and this will be much more consistent with atypical La Nina pattern. The world will need very strong production from South America to meet the projected demand. The stocks to use ration for Soybeans is now very small and the situation is the tightest projected in years.

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