Palm oil off almost 4% on oversupply fears

Corn and soybeans finished mixed again with corn losing a little ground and beans slightly better than unchanged. Overnight they are both slightly lower with palm oil pulling the soybean oil lower. Palm oil was off 3.9% overnight as fears of oversupply hits the market. Drought conditions continue to expand across the US growing areas with 70% of corn and soybean areas under drought conditions. It has jumped 30% in a month. The dry weather has harvest rolling but we need to see a lot of moisture this winter and spring. We will see if this helps prop up 2023 prices or if demand destruction and large SA crops puts pressure on new crop prices. Mexico announced it will continue with its plan to eliminate GMO corn imports by 2024. They import 17 MMT of corn a year and it seems highly unlikely that they can find that volume of Non-GMO corn in a year’s time. For today, let’s use 6.77 & 13.80 for support and 6.92 & 14.19 for resistance. NFC Grain Comments Options -10.28.22