Morning Highlights


Highlights

  • The US Fed Reserve sent some signals out that the end of quantitative easing may be sooner than we think at yesterday's press conference. This along with more data that shows China's economy may be slowing down has had a negative impact on outside markets.
  • The US Dollar is trading at $82.08 up $0.48 while the Yen and Euro slide lower. Crude is down $1.24 at $97.00 and Gold is down $67.10 at $1306.90.

Corn

  • Argentina's agricultural ministry upped its 2012/2013 corn estimate to a record 26.1MMT from 25.7MMT last month. 26.1MMT is also a 23% increase year over year. Argentina is the world's third largest corn exporter behind the US and Brazil.
  • Corn exports from India may be over 5MMT in the 12 months from April 1, 2013 compared to last year's 4.8MMT says the president of the Indian Maize Development Association. He also said that harvest may rise almost 6% to 23MMT in the season starting July 1, 2013, year over year.
  • Corn used in feed in Japan has decreased  to 42% in April from 42.2% in March and 43.9% a year ago because Japanese feedmakers continue to look for cheaper alternatives to corn.
  • Export estimates: Old crop 50,000-100,000; New crop 150,000-250,000. 

Outlook: Lower from pressure from the higher US Dollar.


Oilseeds

  • Argentina's agricultural ministry slightly decreased their estimate for the 2012-2013 soybean crop to 50.2MMT from 50.6MMT. Even with the decrease in size that puts this years crop 25% over last years crop and at 50.2MMT would be the second largest crop on record for the country.
  • Enlist E3 soybeans have gotten approval to be grown in Canada. This Dow AgroSciences soybean is the third Enlist trait product that has been approved in Canada.
  • Malaysian Palm Oil settled down 10 ringgits at 2,462 after yesterday's rallies succumbing to profit taking.
  • Export Estimates: Soybeans 350,000-550,000 new crop; Soymeal 50,0000-150,000 old and 50,000-100,000 new crop; Soyoil 5,000-15,000.   

Outlook: Lower from outside market pressure and drier forecasts.



Wheat

  • Wheat prices in Argentina are on the rise to all-time highs as demand increases and supplies dwindle and new crop wheat harvest is still a ways away. Last year Argentina only planted 3.2 million hectares of wheat compared to their normal 5-6 million. This coupled with last years bad weather in Argentina and around the world stunted supplies as poor harvests abounded. Warehoused wheat prices have increased from $219/tonne in the beginning of the year to $363.
  • The Australian Bureau of Agricultural and Resource Economics and Sciences says that farm exports are going to be around 3.2% lower for 2013/2014 compared with 2012/2013. The decrease to $35.8 billion comes from a potentially weakening Australian Dollar. Export earnings for 2013/2014 are seen decreasing for barley (-7%), canola (-34%), wheat (-4%), cotton (-8%), and sugar (-8%).
  • The Taiwan Flour Millers Association bought 85,500MT of US wheat with guarantees that the shipments will be free of GMO wheat. The association bought Dark Norther Spring wheat (14.5 Protein), Hard Red Winter wheat (12.5 Protein), and Western White wheat (9 Protein).
  • Export estimates: 350,000-550,000.

Outlook: Lower on stronger dollar and drier forecasts increasing harvest pressure.