September 29, 2022
Markets are higher this morning on what seems to be follow-through trade from yesterday. Yesterday’s ethanol numbers were weak. Production was seen at 855K and stocks were at 22.69 million barrels. This is historically a bad week for ethanol and tends to be the bottom. Only time will tell on this. Barge freight is increasing due to harvest demands and low water levels for the Mississippi. Much of today’s trade is going to be positioning for tomorrow’s quarterly stocks report, which has been full of surprises for the last few years. Have a great Thursday!
- Brazilian soybean processors have temporarily halted units as crushing margins turned negative, reflecting weak domestic demand for biodiesel and high vegetable oil inventories, analysts said on Wednesday. Abiove, a trade group representing global oilseed crushers in Brazil, confirmed the move, noting some members advanced scheduled maintenance stoppages as soy oil prices dropped even as soybean prices remained high, hurting margins. Victor Martins, risk manager at HedgePoint Global, said Brazil has over 99 soybean crushing plants, adding over 10 units had already been halted as global soy oil prices fell due to a spike in Indonesian palm oil stocks.
- Leading OPEC+ members have begun discussions about an oil output cut at the group's next meeting on Oct. 5, three sources told Reuters. One OPEC source told Reuters a cut was "likely", while two other OPEC+ sources said key members had spoken about the topic. A source familiar with Russian thinking told Reuters earlier this week that Moscow could suggest a cut of up to 1 million barrels per day (bpd).
- The Taiwan Flour Millers' Association purchased an estimated 51,800 tons of United States-sourced milling wheat in a tender that closed on Thursday. The wheat was bought in one consignment comprising various wheat types for shipment from the U.S. Pacific Northwest coast between Nov. 10 and Nov. 24. The purchase involved 32,950 tons of U.S. dark northern spring wheat of minimum 14.5% protein content, bought at $440.55 a ton FOB U.S. Pacific Northwest coast. The purchase also involved 13,050 tons of hard red winter wheat of minimum 12.5% protein content, bought at $456.35 a ton FOB, and 5,800 tons of soft white wheat of maximum 9.5% protein content, bought at $374.04 a ton FOB.
- The National Carriers’ Conference Committee (NCCC), which represents the nation’s freight railroads in national collective bargaining, announced that members of the International Brotherhood of Electrical Workers (IBEW) have ratified the recent tentative agreement between the IBEW and the nation’s freight railroads. IBEW is the third union to ratify an agreement resolving the current national bargaining round. Tentative agreements with nine other labor organizations remain subject to ratification.
USDA Weekly EXPORT SALES Thursday 09-29-2022 @ 7:30 AM
USDA Quarterly Stocks Report Friday 09-30-2022 @ 11:00 AM
USDA Weekly EXPORT INSPECTIONS Monday 10-03-2022 @ 10:00 AM
Farm Marketing Specialist
Premier Cooperative, Inc.
Office: (217) 564-2271
Direct: (217) 733-2182