Morning Highlights


Highlights:

  • The Dollar was nominally higher overnight, as the Fed showed moderate growth this past summer with car sales reaching their highest level in six years.
  • Asian markets were higher with the Nikkei up slight .1%, trading at 14,064.82, the Kospi was up 1% at 1,951.65, and the Hang Seng gained 1.2% trading at 22,597.97. European markets drifted lower with the FTSE down.1% at 8,471.53, the DAX off .2% trading at 8,180.8 and the CAC-40 down fractionally.
  • Globally stocks were lower as the US inches closer to an intervention in Syria. The Senate sub committee on Foreign Relations voted 10 to 7 to approve a limited involvement to create a "decisive change to the present military balance of power". 
  • Fertilizer prices continue to slide as end users are holding off making purchases for now.
  • World food prices fell for the fourth month in a row, the lowest level in more than a year at 201.8 points, down from July's 205.6 and the high of 237.9 put in back in 2011. The index is 55 food items tracked by FAO, which is the UN's Food and Agriculture Organization.
  • West Texas crude was up slightly from the lowest prices in nearly a week after the Senate approved military action in Syria.      

Corn:

  • Corn traded quietly lower overnight after dipping below the 20 day moving average. However volatility remains high at almost 42%. Fundamentally corn remains strong, however, fund selling has kept the market under pressure.
  • South Korea's Nofi tendering for  140 tmt of corn for Feb.15 to Feb.25 optional origin.
  • There were 4 deliveries overnight bringing the total to 15, the next available date is February 15 2013.
  • China's Development Research Council said at a conference, China needs to choose very soon between buying more feed grains or buying  more meat.    

Outlook: 3 to 5 cents lower in quiet trade.

Oil Seeds:

  • Soybeans traded higher overnight early, however, a lack of follow through gave way to selling and soybeans are currently trading down 8 cents closing in a the gap left last Monday at $13.31 1/2 to $13.48.
  • There were no soybean deliveries, there were 5 contracts of soybean oil bringing the total to 1,376 contracts. The next available date is August 29th 2013.
  • Dalian soybeans were up 4 1/2 yuan overnight, trading at 4,533 yuan.
  • Malaysian palm oil was up 14 ringgits trading at 2,412 ringgits for November.
  • World soybean production is expected to rise to 284 mmt in 2013-2014 according to the Agriculture Market Information System.

Outlook: 10 to 15 cents lower.

Wheat:

  • Wheat traded mixed overnight on a lack of fresh news.
  • Nofi is tendering for 60 tmt of optional origin feed wheat for delivery by December 30.
  • A South Korean miller bought 22.5 tmt of milling quality wheat from Itochu, a Japanese trading company, it was US wheat.
  • Japan bought 59.35 tmt of feed wheat and is seeking an additional 120 tmt of feed wheat and 200 tmt of barley for shipment by December 30.
  • There were 199 deliveries overnight bringing the total to 399 contracts , the next available date is August 28, 2013. There were no spring wheat deliveries and KC had 8 contracts delivered bringing their total to 50 with the next available date JULY 15th, 2013.

Outlook: steady to 3 cents lower.