Morning Highlights


  • US economic growth from April-May was supported by strong home construction, an increase in consumer spending and a steady hiring rate.
  • European Central Bank keeps interest rates unchanged in hope of seeing signs of economic recovery during the second half of the year.
  • Energy markets are mostly higher this morning.
  • The US$ is weaker while the CD$ and equity markets are stronger.


  • The corn market traded mixed overnight with the July edging back a bit after yesterday's strength and the new crop trading higher as the market awaits Monday's planting progress number.
  • Weekly export sales are expected to provide support to the market.  Average sales estimates range from 600-900tmt.
  • Weather conditions look to be drying out over the next week, although there are chances of more rain over the weekend and late next week.
  • Country movement quiet....spreads continue strong with the N/U at an 87 cent inverse, N/Z at a 116 cent inverse.  The Z13/N14 trades around a 23-24 cent carry.

Outlook: New crop rebounds slightly after yesterday, market awaits weekly export sales


  • The soybean market traded lower on ideas of increased soybean acres and technical selling.
  • Weekly export sales estimated at 350-600tmt for soybeans, 50-150tmt for meal and 25-45tmt for soyoil.
  • CONAB pegs the 2012-13 Brazilian soybean  crop at 81.3 million tonnes, down from their previous estimate of 81.5 million tonnes.
  • Indian monsoons expected to be 28% above normal this year, compared to 38%  below normal the previous year.
  • Basis weaker, country movement light, spreads remain strong with the N/Q at a 79 1/2 inverse, Q/U 100 inverse, Q/X at a 150 cent inverse and the N/X 231 cent inverse.

Outlook: weakness continues on technical selling and additional acreage ideas


  • 2013-14 world wheat production is expected to increase 6.5% to 702 million tonnes on a rebound in Black Sea supplies.
  • Japan bought 163,605 tonnes of milling wheat for July -September delivery (61 US, 49 Canadian, 54 Australian white).  Japan continues to suspend white wheat purchases from the US.
  • Weekly export sales estimated at 400-600tmt.
  • Winter wheat harvest moves along through Texas this week.

Outlook: choppy trade on GMO wheat situation, winter wheat harvest and spring wheat planting delays