Morning Highlights


Highlights

  • Hurricane Michael has been downgraded to a tropical storm and is heading into the Atlantic. Meanwhile, forecasts in the Corn-Belt are calling for clearing skies and warming temperatures for the next 7 to 10 days.

  • The Dow Jones Industrial had lost 545.91 points yesterday and settled at 25,052.83. However, Asian markets blunted the selloff. The Nikkei gained 0.5% points at 22,694.66, the Shanghai moved up 0.9% at 2,606.91, and the Hang Seng was up 2.1% at 25,801.49.

  • Canada is imposing tariffs of 25% on seven types of Chinese steel. The action taken is to avoid becoming a dumping ground for China.

  • President Trump and President Xi from China are expected to meet during the G-20 summit next month in Argentina.

 

Corn

  • Corn traded slightly higher overnight as the 180.7 bushel yield from the USDA report is acclimated to the market. Rising ending stocks (1.813 vs 1.774 billion bushels) will pressure corn.

  • Export sales for corn were 1.006 mmt that’s on the low end the range of 1 to 1.5 mmt.

  • Unknown canceled a purchase of 140 tmt of corn from the US.

  • Strategie Grain raised their projection for the EU corn crop to 59.4 mmt, up from last month’s 58.4 mmt.

 

Outlook:  Steady to a penny higher.

 

Oilseeds

  • November soybeans were 4 ¾ cents higher overnight closing higher for the first time this week. Soybean meal in December was off $0.2 a ton at $316.60 per ton.

  • Soybeans in China are up 12 ¼ cents, trading at 3839 yuan’s per tonne. Soybean meal is off $8.50 at 3464 yuan’s per tonne.

  • Export sales for soybeans were 439.7 tmt that’s below the range of 800 tmt to 1.3 mmt. For soybean meal, export sales were 348.2 tmt, that’s in the range of 150 to 450 tmt. Soybean oil export sales were 11.5 tmt.

  • China imported 8.01 mmt of oilseeds in September, that’s down from August’s 9.15 mmt and last year’s 8.11 mmt.

  • Malaysian palm oil was up 22 ringgits, trading at 2,193 ringgits. For the week, palm oil is off 28 ringgits.

  • India imported 930 tmt of palm oil in September, that’s down from last year’s 931.6 tmt.

  • There were no soybean meal deliveries and 107 soybean oil deliveries.

 

Outlook: Steady to 2 to 4 cents higher.

 

Wheat

  • The wheat complex was higher overnight. Chicago wheat was up a 2 ¼ cents, KC wheat was up 2 cents and Mpls spring wheat was up 2 ¼ cents.

  • Export sales for wheat were 87.0 tmt, that’s well below the range of 300 tmt to 600 tmt.

  • Bangladesh is tendering for 50 tmt of wheat by October 24th.

  • France’s Rouen Grain exports fell 5.1% for the second week of October.

  • Matiff wheat was trading ¼ euro lower at 203.75 euro’s per tonne.

  • Vietnam is going to re-export Russian wheat after November 1st if it continues to contain thistle seed.

  • Western Australia is expecting the smallest wheat crop in 11 years due to drought and early frost. The USDA pegged the Australian wheat crop at 18.5 mmt.

     

Outlook: Steady to 2 cents higher.