Morning Highlights


Highlights

  • Vice Premier Liu He will be coming with the rest of China’s delegation this week for meetings with the US, however, if the US increases tariffs there will be a response from China.

  • China is planning to transfer assets from Sinograin to Cofco. The move will be implemented in stages, Cofco will be taking over oilseed processing from Sinograin.

  • According to the Bloomberg Grain Subindex Total Return, corn and soybean prices are at a 42-year low.

  • Weather forecasts are still expecting rain through midweek which will slow corn planting further, however, forecasts are calling for better weather next week.

  • Asian markets are mixed overnight, the Hang Seng was off 0.3% at 28,995.0, ShangHai Composite was up 0.7% lower at 2,906.46. The Dow Jones Industrial is off 0.39% at 25,044.3. The Stoxx EU 600 fell to a five-week low.   

  • Outside markets as of 6:15 am CT: Dollar up .04% at 97.551, crude oil is down $0.59 at $61.65, gold is at $1,281.70.

     

Corn

  • Corn traded mostly higher overnight, however, a test of support at $3.63 in July futures opens the door for further decline to test $3.57, resistance is at $3.75.  

  • Planting progress was pegged at 23%, half of the five-year average, 13% less than last year and 2% below what traders were expecting.    

  • There were 210 deliveries with the next available date being May 6th. That brings total deliveries to 3,513 contracts.

  • Funds sold over 30,000 contracts of corn yesterday leaving them short almost 320,000 contracts. Open interest stands at 1,622,000 contracts

 Outlook:  steady to 1 lower.  

 

Oilseeds

  • Soybeans were mixed overnight following soybean meal lower. Soybean oil traded higher following palm oil higher.

  • The soybean plantings were 6% vs the five-year average of 14% and last year’s 14% .

  • Malaysian palm oil futures were up 59 ringgits to 2040 overnight.

  • Soybeans in China were up ½ cent trading at 3,403 yuan per tonne.

  • Brazil shipped 2.9% fewer soybeans to China last month vs 19% fewer than last year. This was due in large part to ever expanding African Swine Fever reducing China’s hog population.

  • There were 762 soybean deliveries, 284 soybean meal deliveries, and 420 soybean oil deliveries.

 Outlook: steady to 2 higher.  

 

Wheat

  • Spring wheat plantings were at 22% vs the five-year average of 49% and last year’s 27% planted.

  • The Ukraine wheat crop is estimated to be a record 28 mmt according to UkrAgroConsult. April’s estimate was 26.8 mmt with favorable rains were cited.  

  • The US winter wheat crop is in the best shape since 2010. 64% of the winter wheat crop was rated good/excellent last week. That’s compared to last year’s 34%.  

  •  Japan will tender for 82 tmt of US and Canadian wheat May 9th and 29.24 tmt of Australian white wheat.

  • Jordon is tendering for 120 tmt of wheat.

  • There were 10 Chicago wheat deliveries with the next available date May 2nd. There were no winter wheat or spring wheat deliveries.

    Outlook: 3 to 5 cents lower.