5/16/2018 7:22:01 AM
- Energy markets are mostly weaker with crude oil falling below $71/barrel.
- The US$ is stronger, CD$ weaker and gold weaker.
- Wall Street is posting lower numbers across the board.
- Ethanol production numbers are scheduled for release this morning.
- The corn market traded higher on borrowed strength in the wheat market.
- 1-2” rains are expected to fall in Southern Brail this week with more chances for rain in the 6-10 Day outlook.
- Ethanol production is expected to be seen above last week as many plants have wound up their maintenance work and are now in full operation.
- China’s corn prices were up 3 ½ cents on concerns of dryness in the growing areas
- Spreads; N/U 8 ¼ cents, 62% of full carry (13 ¼ cents).
Outlook: higher trade on strength in the wheat market
- The soybean market traded lower on commercial selling, amidst favorable weather and rapid planting progress.
- China slows purchases of soybeans as crush plants have ample supplies and lack of demand from the hog farmer.
- The July is trading a few cents below its 200-Day moving average of $10.15 ¾ and the November is hanging just above its 100-Day MA of $10.19.
- Argentina struggles with quality issues in their beans and lack of farmer selling, despite a weaker currency.
- August palm oil closed at 2,414, down 22 ringgits on spillover weakness from China and the US soy complex.
- China’s beans were down 26 ¾ cents, meal was down $9.90 and oil was down 31 points.
- Spreads; N/Q 3 ¼ carry, 37% of full carry (9 cents).
Outlook: lower trade on outside markets, higher US$ and weaker crude oil
- Wheat prices continued to move higher on followthrough from yesterday. Mpls appears to be leading the pack higher on dryness in the Dakotas and Canadian Prairies.
- There are chances for rain across ND and Canada this weekend (1/2”-1”). Measurable rain is forecast for the Southern Plains over the next 10 days.
- Russia’s spring wheat areas remain wet, causing some planting delays.
- Taiwan purchased 83,350 tonnes of US milling wheat for July shipment.
- Spreads; Mpls N/U 8 ¼ carry, 62% of full carry (13 ¼ cents), U/Z 11 ¾ carry, 42% of full carry (28 cents).
Outlook: higher trade on dryness in the Northern Plains