Morning Highlights


Highlights

  • Export Inspections will be released today at 10:00 am.
  • The US Dollar index was nominally higher overnight, trading up 0.088 to 90.181 points.
  • The energy markets were weaker with the front month crude oil down $0.39 to $61.65 per barrel.
  • According to people familiar with the matter, the already slow takeover talks between ADM and Bunge have now stalled.
  • The March grain contracts will go off the board on Wednesday, March 15th.

    Corn

  • The corn market was lower overnight on follow through selling from Friday and weaker wheat markets.
  • The Commitment of Traders showed corn speculators continued to establish their long as they bought 107,400 contracts bringing their net position to long 200,700 contracts. Over the past 7 weeks they have bought 458,800 contracts.
  • The National Biodiesel Board and World Agricultural Economic and Environmental Services have released a new analysis that found capping the price of conventional ethanol RIN’s would lead to a reduction of up to 300 million gallons of biomass-based diesel volumes each year.
  • Chinese corn reserves are seen dropping due to positive ethanol policies and fewer corn acres expected to be planted.
  • The May corn contract left a gap overnight from $3.89 ½ to $3.89 ¾.
  • Spreads: H/K 7 cent carry, K/N 7 ¾ cent carry, N/Z 9 ¾ cent carry.

    Outlook: Choppy to lower off the open as the market continues to correct the latest move higher.

    Soybeans

  • The soybean market continued to trade significantly lower overnight, but came off its lows, as traders look to make a corrective move after the big price drop on Friday.
  • South Korea’s Major Feedmill Group purchased about 110,000 tonnes of soymeal from South America late last week.
  • Traders are increasing their estimates for Chinese soymeal exports to 2 mmt, compared to 1.1 mmt last year, due to a smaller Argentina soy crop.
  • Friday’s Commitment of Traders showed soybean speculators were buyers for the 7th straight week, as they bought 32,200 contracts bringing their net position to long 148,900 contracts.
  • Malaysian palm oil was up 5 ringgits overnight to 2,381 ringgits to start the week off.
  • Chinese Dalian soybean futures were down 25 ¾ cents overnight, while their soymeal contract was down $8.70/ton.
  • Spreads: H/K 10 cent carry, K/N 9 ¼ cent carry, N/X 19 cent inverse.

    Outlook: Choppy to higher trade on profit taking and technical buying after the sell off on Friday.

    Wheat

  • The wheat market’s continued to trade lower on ample supplies reported late last week.
  • Iraq tendered over the weekend for 50,000 tonnes of wheat from the U.S., Canada, or Australia.
  • The Commitment of Traders showed wheat speculators were buyers of 29,500 contracts bringing their net position to short 43,400 contracts.
  • Algeria is seeking 50,000 tons of soft wheat for June shipment.
  • Spreads for K/N: Chicago 16 ¼ cent carry, KC 16 ¾ cent carry, Mpls 8 cent carry.

Outlook: Lower trade on ample supplies.