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Grain and soy markets took a collective swoon yesterday after reaching against the highest levels traded in a month. Evidently, all of this recent rally activity must have become just too much for some market participants. That said, prices have bounced back again this morning supported by a wet weather outlook for many across the Midwest. Realistically, unless we witness torrential rains for weeks on end, I suspect such support will be temporary, but the action would suggest the trade is ready to grab and run with positive news when presented.
Global food prices slipped backward just a bit in September. According to the Food and Agricultural Organization of the UN, the average price for the breadbasket of products they track came in at 165.4, versus 167.7, or -1.4% in August. The only commodity that did not lose ground was sugar.
This is Thursday morning which means weekly export sales and the figures, while within expected ranges, are generally positive. At the low end of the range, we have wheat with sales of 435,300 MT or 16 million bushels. This was close to the upper end of expectations but was 34% below last week and 8% below the 4-week average. Top sales went to Brazil at 90k MT, followed by Saudi Arabia with 65k and then Nigeria taking 55.5k. Corn sales were above the million metric ton mark again with a total of 1,431,000 MT or 56.35 million bushels. Out two neighbors topped the list with Mexico purchasing 527.4k MT and Canada 199.7k, with Peru coming in at the number three position with 184.9k. Beans also broke through the million-ton mark with total sales of 1,521,200 MT or 55.9 million bushels. Once again, we find Mexico on top with 730.4k MT, followed by Unknown destination taking 274k and then Germany rounding out the top three with 135.8k.
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