Morning Highlights


Highlights

  • Tomorrow, the USDA will release its June 1 stocks and acreage estimates for the grains and oilseeds at 11:00am Central time. 
  • Overseas stock markets were generally higher with the Nikkei up 379 points, the Hang Seng up 101 points, the Stoxx 50 down 5 points, the FTSE 100 up 17 points, and the DAX up slightly. 
  • The U.S. dollar is off 0.03, crude oil is up $0.20/barrel, and the Euro is higher. 
  • Eastern MN and IA to OH caught rains yesterday with totals ranging from 0.35”-1”, with storms and showers finishing up in the east and south in the next few days.  Temperatures cool off this weekend and remain cooler into next week. 

Corn

  • Corn traded moderately higher in the front month contracts, while trading slightly lower in the deferred contracts, as traders await tomorrow’s USDA reports.  December corn is lower for the 6th straight day as traders view continued moisture in the Midwest as favorable for crop growth. 
  • Traders continue to exit corn futures, with open interest down 22,760 contracts in yesterday’s trade, with the July contract losing 25,900, and the September gaining just 3,600.  Remaining July open interest is about 63,800 contracts. 
  • South Korea bought 55 tmt of Brazilian corn at $280/tonne for arrival by October 15th. 
  • Corn export sales last week are expected to be between 200-500 tmt. 

Outlook:  Sideways trade is expected ahead of tomorrow’s USDA report.

Soybeans

  • Soybeans traded higher overnight, with the July contract showing gains for the 4th straight day on tight old crop supplies.  The November contract traded slightly higher ahead of the Friday USDA report. 
  • Malaysian Palm oil futures fell 24 ringgits to 2,355 in the September futures contract.  Rising soyoil supplies pushed palm oil futures to the lowest price in over a month. 
  • Dalian soybeans fell overnight as Chinese traders expect oilseed supply to jump due to increased soybean imports in the next two months.  Soymeal demand for hog production is expected to rise too, but may face downward pressure due to the rising soybean supply, according to the NGOIC. 
  • Soybean futures continue to leak open interest ahead of the USDA report tomorrow, losing 8,890 contracts in yesterday’s trade.  Remaining July open interest is about 31,000 contracts. 
  • Soybean export sales are expected to be between 100-400 tmt, soymeal between 50-150 tmt, and soyoil between 0-10 tmt. 

Outlook:  Mixed to firmer as traders weigh tight supplies against expectations for tomorrow’s stocks and acreage report.

Wheat

  • Wheat futures generally traded higher overnight with Kansas City leading the way, finding support from rains in the south and east portions of the Midwest disrupting harvest progress. 
  • Argentina’s government has halted wheat exports in response to increasing bread and flour prices.  Wheat exports for the year as of June 12th came in under 3 mmt, following one of their shortest wheat crops in over a century. 
  • A well-known weather modeling company cut their 2013/2014 world wheat estimate by 200 tmt due to acreage reductions in Canada. 
  • Wheat export sales are expected to be between 300-600 tmt. 

Outlook:  Mixed to firmer ahead of the Friday USDA report as wet weather continues to disrupt harvest in parts of the winter wheat belt.