Carolina Ag Advisors Weekly Wrap Up 5/12/23

General Market/News

                Another bank is in the news this week. PacWest Bancorp deposits were down 9.5% last week. As a result, their stock price is now down around 20%.

                China canceled another 10.7 million bushels of US corn purchases this week. China still has over 100 million bushels of old crop corn purchased from the US but at the rate they have been canceling many wonder how much will actually be shipped?

                The mainstream media is full of talks of debt ceiling and possible default. Since 1960 the debt ceiling has been raised 78 different times. I bet it happens again this time, but the political powers have to do their song and dance first.

                Negotiations are underway to try to extend the Ukraine grain initiative. There have been hints of a 60-day renewal coming but still many unknowns. The current agreement expires on May 18th.

                On an overtime goal by Jesper Fast the Carolina Hurricanes have advanced to the Eastern Conference Finals. They await the winner of Florida Panthers and Toronto Maple Leafs. Currently the Panthers lead that series 3-1.

Commodities this week and WASDE Recap

Today (Friday 5/12) the USDA published the March WASDE report. Looking at the upcoming crop year, yields and planted acres were left unchanged from the March report. 23/24 US corn carryout is projected at 2.22 billion bushels this is up 805 million bushels from what is projected to be carried in from the 22/23 crop. US soybeans are projected to have a carryout of 335 million bushels for 23/24. This is an increase of 120 million bushels that is expected to be carried in from the 22/23 crop.  Corn and beans are projected to have good production and fairly flat usage resulting in the increase supplies. Wheat on the other hand, 23/24 carryout is projected at 556 million bushels which is down 42 million bushels to what is expected to be carried in from the 22/23 crop. Lastly, Cotton stocks are projected at 3.2 million bales carryout from 23/24 crop which is down 200k bales from carry in.

This past Monday’s crop progress report showed: US corn planting at 49% (average 42%) US soybeans planting at 35% (average 21%) NC corn planting 85% (average 84%) NC soybean planting at 15% (average 19%). US Cotton planting at 22% (average 23%) NC Cotton Planting 14% (average 19%)

All prices were gathered the afternoon of Friday, May 12, 2023, and compared to open price on Monday morning.

  • Oil, down $1.23 a barrel to $70.12.
  • July 2023 Corn, down 10 cents to $5.59.
  • Dec 2023 Corn, down 26 cents $5.08.
  • July 2023 Beans, down 46 cents to $13.90.
  • Nov 2023 Soybeans, down 59 cents to $12.23.
  • July 2023 Wheat, down 27 cents to $6.35.
  • May 2023 Cotton, down 349 points to 80.41.
  • Dec 2023 Cotton, down 300 points to 80.07.

Local Basis Talk

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