Morning Highlights


Highlights

  • President Trump was quoted yesterday saying we’ll have news on a China trade deal or no deal in the next three to four weeks.
  • Chinese Premier Li Keqiang said this morning China’s economy has encountered new, downward pressure and pointed out global economic growth is under pressure. Regarding the trade talks, he said that both sides remained in close discussions and believed there is enough wisdom for both to diffuse tensions.
  • Asian stock markets were higher overnight with the Nikkei up 163.83 points at 21,450.85. The Hang Seng in China was up 160.87 points at 29,012.26. In Europe, the FTSE gained 51.18 points at 7,236.61. In the US, the Dow closed 7.05 points higher yesterday at 25,709.94.
  • The US Dollar was down .114, trading at 96.655.
  • Crude oil in April is down $0.03 at $58.58 a barrel. Futures climbed to their highest level so far in 2019 supported by US sanctions on Venezuela and OPEC production cuts.

 Corn

  • The corn market was lower overnight after a strong performance yesterday, supported by ethanol prices.
  • South Korean feed manufacturer, MFG, is exploring the idea of buying feed wheat instead of corn as the spread between the two has narrowed. They have tendered for feed wheat from the Black Sea region for new crop.
  • Corn on the Dalian exchange was higher overnight, up 3 ½ cents at 1,845 yuan per tonne.
  • There were 222 contracts delivered.
  • Spreads: K/N 9 ¼ cent carry, K/Z 22 ¾ cent carry.

 Outlook: Lower with lack of news.

 Oilseeds

  • Soybeans were up overnight, continuing the trend higher for the week. Prices overnight stayed within yesterday’s range.
  • NOPA crush report today is expected to bring another record with expectations at 158.730 million bushels for February.
  • Soybeans in China were up 11 ¼ cents, trading at 3,421 yuan per tonne. Soybean meal was up $1.60 per tonne, trading at 2,565 yuan per tonne.
  • There were 147 contracts of soybeans delivered, 177 contracts delivered in soybean meal and 13 deliveries in soybean oil.
  • Spreads: K/N 13 ¾ cent carry......K/X 34 ¼ cent carry.

 Outlook: Mixed with nothing new on trade talks.

 Wheat

  • The wheat markets were lower overnight with Chicago wheat down 1 ½ cents. KC winter wheat was down ½ cent and Mpls May wheat was 1 ¾ cents lower.
  • Global wheat prices in the EU and Black Sea have been increasing, providing support to our markets.
  • Focus on the winter wheat conditions for the northern hemisphere is increasing. Domestically, there are concerns about SRW due to excessive moisture while the HRW conditions are improving with the recent rains they’ve seen.
  • Paris milling wheat is up 0.25 euros per tonne at 188.00 euros on the May but the contracts beyond are down 1.50 euros per tonne.
  • There were 23 deliveries of Chicago wheat and no deliveries of Kansas City wheat.
  • Turkey purchased roughly 290,000 mt of wheat likely from the Black Sea and the EU.
  • Spreads: Mpls K/N 3 ½ carry, K/Z 23 cent carry, Kansas City K/N 8 ¾ cent carry, K/Z 39 cent carry, Chicago K/N 6 ¾ cent carry and K/Z 29 ¾ cent carry.

 Outlook: Slightly weaker, supported from higher global prices.