On the Grains
Good Friday morning, buckle up, we got ourselves a rally in soy oil following production concerns in Malaysian Palm Oil. How much traction that story gets, only time will tell. We’ve had an impressive week so far and should set the stage for some great crush numbers in upcoming reports. While any increase in usage is great, stocks are still burdensome.
On the corn, another wild day of testing the 50 DMA and then just hanging out followed up by an action packed overnight of up 2 1/2. The export sales report was favorable at 92.2 MB as we are running about 41% ahead of last year at this time. Meanwhile USDA only has a slight increase in exports (3%) in year-over-year business. If this trend holds it should put us at 2.475 billion bushel export mark for 24/25 vs USDA at 2.325 billion bushels. In a normal year I would question whether we had the ability to FOB that much corn out of the U.S. However with the large South American bean crop coming we should have additional FOB capacity as bean exports die off in January or February.