Morning Highlights


Highlights

  • US Trade Representative Robert Lighthizer testified yesterday in front of the US Senate Finance Committee on trade. Regarding trade talks with China, Lighthizer said they hope they are in the final weeks of having an agreement in place but also noted there are major issues to resolve yet.
  • Lighthizer also said in his testimony they are working on a plan to lift the tariffs in place on Mexican and Canadian steel and aluminum. The USMCA does not appear like it will get approval from Congress if those tariffs are still in place.
  • Asian stock markets were lower overnight with the Nikkei down 213.45 points at 21,290.24. The Hang Seng in China was down 113.42 points at 28,807.45. In Europe, the FTSE gained 0.55 points at 7,151.70. In the US, the Dow closed 96.22 points lower yesterday at 25,554.66.
  • The US Dollar was down .094, trading at 96.805.
  • Crude oil in April is up $0.58 at $57.45 a barrel.

 Corn

  • The corn market was slightly weaker overnight, retracing from yesterday’s short covering and support from wheat.
  • There isn’t much movement in the country with futures at depressed levels and the basis remaining subdued. Funds have a significantly large short position.
  • Turkey bought 300,000 mt, likely from the Black Sea and EU. Taiwan bought 65,000 mt of corn from Argentina. The US remains noncompetitive on the global corn market.
  • Corn on the Dalian exchange was lower overnight, down 2 cents at 1,835 yuan per tonne.
  • There were 468 contracts delivered.
  • Spreads: H/K 9 ½ cent carry, K/N 9 ¾ cent carry.

 Outlook: Lower with wheat weighing on corn.

 Oilseeds

  • Soybeans were lower overnight, off from the gains seen yesterday.
  • Another case of African swine fever was reported in China, finding it in a truck that was carrying pigs. The more the fever spreads and the more hogs that must be slaughtered, the less soybean meal China will need.
  • Soybeans in China were up 2 cents trading at 3,394 yuan per tonne. Soybean meal was up $1.30 per tonne trading at 2,524 yuan per tonne.
  • Malaysian palm oil futures were down 25 at 2,091 ringgits.
  • There were 153 contracts of soybeans delivered, 69 contracts delivered in soybean meal and 155 delivered in soybean oil.
  • Spreads: H/K 12 ¼ cent carry......K/N 13 ¾ cent carry.

 Outlook: Lower on lack of supportive news.

 Wheat

  • The wheat markets were lower overnight with Chicago wheat down 8 cents. KC winter wheat was down 8 ½ cents and Mpls May wheat 3 cents lower.
  • Yesterday’s significant gain can be attributed to the funds short covering some of their massive short position. It is hard to say the lows are in with nothing changing in fundamentals and the possibility that funds can sell the market right back down.
  • Paris milling wheat is unchanged at 184.25 euros.
  • There were 11 deliveries of Chicago wheat and no deliveries of Kansas City wheat.
  • South Korea is looking to buy 50,000 mt of milling wheat from the US and 30,800 mt from Australia.
  • Spreads: Mpls H/K 8 ¼ carry, K/N 3 cent carry, Kansas City H/K at a 7 cent carry, K/N 9 ¼ cent carry, Chicago WH/K 5 ½ cent carry and K/N 7 ¾ cent carry.

 Outlook: Lower, retracing from yesterday’s large gains.