Morning Highlights


Highlights

 

  • The USDA announced a $19 billion coronavirus aid package for farmers. $16 billion in farm aid for dairy, livestock, and vegetable growers, $3 billion in food aid.
  • May crude oil plummeted to a new twenty-year contract low this morning trading at $11.04 per barrel.
  • May grain options expire this week on April 24th.
  • The 6-10-day outlook has above normal precipitation for most of the Corn-Belt and temperatures above normal in the Northern Corn-Belt, normal temperatures for the remaining Corn-Belt.
  • Outside markets as of 6:00 am CT: Dollar up 114 points at 99.896, crude oil down $7.02 at $11.04, Dow up 704.81 at 24242.49 and Gold down $2.70 at $1,685.50.

 

Corn

  • Corn traded mostly lower overnight as crude oil collapsed $5.33 a barrel.
  • Managed money funds continues to liquidate their position selling 27,169 contracts last week.
  • Corn on China’s Dalian exchange settled $0.02 ½ trading 2,070 yuan per ton.

     Outlook: 2 to cent slower following crude oil.

     Oilseeds

  • Soybeans were nominally lower following crude oil lower. Soybean oil was off $0.25 points, while soybean meal was up $0.30 a ton.
  • Soybeans in China were off $0.14 ¼ a bushel, while soybean meal was down 3.40 a ton trading at 2,741 yuan per ton. China is expected to buy 92.5 mmt of soybeans up from 88.6 mmt in 2019 according to China’s ag minister.
  • Malaysian palm oil was down 3 ringgits overnight trading at 2,232 ringgits.
  • Managed money funds liquidated 4,639 contracts leaving them long only 12,522 contracts.

 Outlook: Steady to 2 cents lower.

 Wheat

  • Wheat was higher overnight as Matiff wheat was up 5.75-euro trading at 204.25 euro/tonne. May Matiff wheat climbed to a new 20 year high.
  • Matiff wheat surged after crop conditions deteriorated to 61% for the week of April 13th, the worst in nine years.
  • Dryer weather conditions took the Russian wheat crop down to 77.2 mmt according to IKAR.
  • India’s wheat harvest is reported 67% harvested.

 Outlook: 10 to 12 cents higher on higher Matiff wheat prices and adverse weather.