Markets have been quiet with low volume and liquidity going into the long holiday weekend with very little fresh news to add movement to the markets. Grain markets will close at their regular time on Friday, December 30th for New Year’s and re-open at 7:30 a.m. MT on Tuesday, January 3, 2023.
The next USDA report is scheduled for January 12, 2023. They will be reporting the final 2022-23 production numbers, updated balance sheets for the U.S. and world and a first look at the winter wheat seedings. This is generally one of the biggest reports of the year.
Corn/Milo
Corn finished last week higher with values inching closer to the 50 and 100 day moving averages of 6.69. Corn has found its strength on a higher whet market as well as more export business to Mexico, but gains were limited on forecasts for rain in Argentina. Only 15% of Argentina’s corn crop is rated Good/Excellent.
Wheat
Wheat markets found some support to end the week with the focus on cold temperatures and lack of snow cover that could lead to winterkill damage across parts of both the Hard Red Winter and Soft Red Winter Wheat areas. The Kansas City wheat contrat did gain a little over 30 cents for the week but will need to trade above $8.91 this week for an extension in the rally.
Soybeans
Soybeans ended the week higher in light holiday volume as well as ongoing demand from China. China is finishing 2022 with low soymeal stocks, so there is some hope that they will continue to purchase U.S. soy products.
Outlook
Though demand has been uncertain over the last several months of volatility and high prices, supply will become a key factor when demand starts to pick back up. The 2023 crop year will be critical for both supply and prices as countries start to build back up inventories after a couple of years of lower world production.
Other News
Oil markets closed last week firmer on talk of Russia cutting their oil production in retaliation to the price cap on Russian exports. The U.S. Dollar is holding onto strength on expectations that the Federal Reserve will continue increasing interest rates in 2023.
Disclaimer
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