Morning Highlights


Highlights


  • As of 7:00am, the Dollar Index was up .450 at 80.832, crude oil down $.93 at $91.99, gold down $40.00 at $1634.60 and S&P futures were down 2.50 at 1453.00.
  • Grain markets will be closed Sunday night and Monday, in observance of Memorial Day holiday (May 27th) and will re-open Monday night at 7:00pm CT.  CHS Hedging's overnight phone line will be available from 4:00pm to 9:00pm CT on Monday night to place orders.
  • June serial grain options expire this Friday
  • A preliminary version of China's PMI index showed contraction in their manufacturing activity with a value of 49.6 and has heightened concerns about the strength of their economy.
  • Japan's Nikkei stock index has fallen 7.3% overnight and some European stock markets are down over 2%.

Corn


  • Weekly export sales were 446.2TMT vs. estimates of 200-500TMT.
  • Weekly ethanol production was 875k bbl/day, up 18k bbl/day.  Ethanol stocks were down 200k bbl to 16.2 mil/bbl, the lowest level since 2010.
  • USDA announced new crop sales of 360TMT to China and 180TMT to Unknown yesterday.

Outlook: Choppy to 3 lower with pressure from outside markets.


Oilseeds


  • Export sales for soybeans were 1.022MMT vs. estimates of 400-800TMT.  Soymeal was 256.6TMT vs. estimates of 100-225TMT and Soyoil was 9.6TMT vs. estimates of 0-15TMT.
  • Uncertainty about the dockworkers strike at the Rosario port in Argentina is keeping traders concerned about possible new export demand here in the U.S.
  • National bean basis dropped another 14 cents yesterday, making total losses for the week of 36 cents.

Outlook: 1-3 lower after reversing from overnight strength, but good exports should help support.


Wheat


  • Export sales for wheat were 952.6TMT vs. estimates of 400-700TMT.
  • Extended maps are showing above normal temperatures returning to most of the nation and below normal precipitation for the southern half, including much of the HRW belt.
  • Algeria is reported to have bought 400TMT optional origin wheat.  Traders think it was likely of French origin.
  • Japan bought 122TMT milling wheat in their weekly tender, which included 67.9TMT of U.S. origin.

Outlook: 3-5 higher as traders watch weather forecasts here and globally.