Morning Highlights


Highlights

  •  Hurricane Michael, now a category 4 hurricane is expected to hit northern Florida tomorrow morning. The storm surge is expected to reach 13 feet.

  • Wet weather continues to plague the Corn-Belt, however, forecasts are calling for clearing skies by Monday.

  • Overnight in the stock markets, the Nikkei was up 40.6 points at 27,829.50, the FTSE was down 24.60 at 20,088.7, the Hang Seng was up 0.1% at 26,193.07, and the Dow Jones was off 56.21 points at 26,430.57.

  • China is expanding the group of banks it considers too big to fail as their economy continues to slow, 20 businesses has grown into 50.  

  • India is stepping up to fill some of the void left by the trade war between China and the US. Indian exports to China have increased 52.9% from April to August year on year.

  • The USDA October S & D report will be released Thursday morning at 11:00 AM central time.

 

Corn

  • Corn trade was even quieter overnight, trading in a very narrow range of ¾ cent. Currently, it’s down a ¼ cent. The trade is bracing for tomorrow’s USDA report.

  • Despite the wet weather the corn crop is 34% harvested.

  • The French Ag minister lowered French ending stocks for corn to 2 mmt.

 

Outlook:  Steady to a penny lower.

 

Oilseeds

  • November soybeans were down 3 ¾ cents overnight on weaker soybean meal and a stronger US Dollar. Soybean meal in December was down $1.20 per ton at $316.60.

  • Despite the wet weather the soybean crop is 32% harvested.

  • China is considering changing the ration they used to feed their hog to use less soybean meal.

  • Soybean planting in Parana Brazil is at 38% compared to last year’s 29% and the five year average of 6.9%. Currently it’s raining in Brazil which should help seeding. 

  • Malaysian palm oil was down 12 ringgits trading at 2,193 ringgits.

  • There were 42 soybean meal deliveries and 153 soybean oil deliveries.

 

Outlook: Steady to 2 cents lower.

 

Wheat

  • The wheat complex was lower overnight, Chicago wheat was off 2 ¼ cents, KC wheat was down 2 ¼ cents and Mpls spring wheat was off 2 cents.

  • Ukraine’s wheat exports have reached 36% of their target for 18-19 season. Their target is 8 mmt. Wheat shipments were 2.3 mmt for September down 12%.

  • Matiff wheat was trading ½ euro lower at 203 euro’s per tonne.

  • Jordon will tender for 120 tmt of wheat by October 17th.

  • Syria’s wheat production is expected to fall to the lowest level in 3 decades.

     

Outlook: One to three cents lower.