Morning Highlights


Highlights

  • NOPA crush report for April is scheduled for release today around 11 AM CDT.
  • Energy markets are higher with crude oil hanging above $71/barrel.
  • The US$ is stronger while the CD$ and gold are weaker. The Dow, S&P, NASDAQ and Nikkei are all lower this morning.
  • There has been no resolution to the US/Chinese trade tensions, although negotiations are in progress.

Corn

  • Corn traded higher on fund buying, despite planting progress better than the trade expected.
  • More rain for southern Brazil is expected this week. While the current losses to the crop are irreversible, many are hopeful that additional crop losses can be minimized.
  • Weather is mostly favorable for the week, with chances of rain showers later in the week.
  • South Korea passed on their corn tender, citing too high prices with the lowest price coming in from South Africa at $229.50/tonne.
  • Spreads; N/U 8 ¼ carry, U/Z 9 ¾ carry, Z/H 8 ½ carry.

Outlook: higher trade on fund buying and South America crop worries

Soybeans

  • The soybean market traded slightly higher overnight on more crop losses expected in Argentina and hopes that China may resume buying US products.
  • The average trade estimate for April crush report; 160.966 million beans crushed with soyoil stocks at 1.98 billion pounds.
  • The Brazilian farmer is said to be 98% harvested on beans and to have sold 64% of their new crop because of higher prices.
  • August palm oil closed at 2436, up 17 ringgits continued weakness in the ringgit.
  • The Chinese bean market was 18 cents lower overnight and meal was down $4.10/ton.
  • Spreads; N/Q 3 ¾ carry, N/X 5 ½ carry, Q/U ¼ inverse, Q/X 2 ¼ carry, X/F 4 carry.

Outlook: higher trade on Argentina crop worries from last week’s rains

Wheat

  • The wheat market rebounded slightly, after several days of losses. Mpls hovers just above the $6 support level with a 3-4 cent trading range.
  • The winter wheat saw a 2% improvement in conditions from last week, but there are concerns of crop damage to the winter wheat crop after hearing that a hail storm moved across Kansas overnight.
  • Gains were limited on ideas of ample world supplies, primarily from Russia.
  • Japan tenders for 89,937 tonnes of wheat in their routine food tender (14k US spring, 31k Canadian spring, 25k Australian white and 20k US white).
  • Egypt tendered for wheat late yesterday afternoon. There was soft and hard wheat in the tender list. Shipment is scheduled for FH Sep. Lowest offer seen was $219.90 from Ukraine.
  • Spreads; Mpls N/U 7 ¼ carry, U/Z 11 ½ carry, Kansas City N/U 18 ¾ carry.

Outlook: higher trade on technical bounce and winter wheat crop concerns