Morning Highlights


Highlights

  • A band of rain hit the eastern Corn Belt dropping between .30”-.80” of rain. Temps in the upper Midwest have cooled down to the 50’s and 60’s. No big changes in the forecast, with a few more days of rain hitting the Midwest.
  • US Trade Representative Robert Lighthizer has submitted a letter to US lawmakers, saying he has triggered a 90 day consultation period with Congress to talk over NAFTA beginning August 16th.
  • The President of Brazil, Michel Temer, said yesterday he would not resign despite the investigation into bribery allegations. Yesterday we saw the biggest drop in Brazilian Real values since 1999.
  • US Dollar futures dropped again overnight and at last look the nearby contract was down 0.512 to 97.260.
  • The energy markets where higher overnight as the nearby crude contract is trading up $0.59 at $49.94 per barrel.

    Corn

  • Corn rebounded in the overnight session on a weaker dollar and profit taking from yesterday.
  • The Buenos Aires Grain Exchange reported corn harvest at 31.8%. They also increased their planted area estimate to 5.1 million hectares, and their production estimate was raised to 39 mmt.
  • BAGE also reported that in the first 3 months of 2017, grain exports jumped 97% year over year.
  • China sold 989,630 tons of corn at auction. The corn was from 2011 and 2012, and it sold for $177.85 a ton.
  • Strategie Grains cut their EU total grain production estimate by 3.6 mmt to 301.6 mmt due to dryness and frost.
  • Spreads: N/U 7 ½ cent carry, U/Z 10 ¼ cent carry, Z/H 9 ¾ cent carry.

    Outlook: Looking for strong trade off the open on rebounding trade from yesterday.

    Oilseeds

  • Beans made solid gains overnight on profit taking and a weaker US Dollar.
  • The Brazilian farmer is estimated to have sold anywhere from 2-5 mmt of corn and soybeans yesterday.
  • The Buenos Aires Grain Exchange reported soybean harvest at 66.5%, up 17.5% from the week prior. Despite a slight drop in average yield, they increased their final production estimate up to 57.5 mmt.
  • Malaysian palm oil was up 9 to 2,635 ringgits overnight. Weekly change of up 56 ringgits. Dalian bean futures fell 8 ¼ cents in their trade day.
  • South Korea’s Korea Feed Association purchased 55,000 tonnes of soymeal with likely origins of South America.
  • China’s May soybean inbound shipments may be up to 8.48 mmt.
  • Spreads: N/Q 1 ½ cent carry, Q/U 2 ¼ cent inverse, N/X ¾ cent carry.

    Outlook: Looking to stay firm off the open with support from the weaker dollar.

    Wheat

  • The wheat markets were supported overnight on profit taking and a weaker US Dollar.
  • French soft wheat conditions dropped to 75% good to excellent vs 76% last week.
  • Venezuela is set to import 60,000 tonnes of Russian wheat per month with the first shipment starting this year.
  • Strategie grains dropped their EU wheat production estimate 1.1 mmt to 142.7 mmt due to frost.
  • N/U Spreads: Chicago 13 ¾ cent carry, KC 17 cent carry, Mpls 6 ¾ cent carry.

Outlook: Looking to stay firm on support from the row crops and weak US Dollar.