Morning Highlights


Highlights

  • April lean hog futures and options expire today.

  • May grain options expire at the close on Friday, April 26 with first notice day April 30th.

  • StatsCan is scheduled to release their 2019-20 principal field crop acreage numbers on April 24th.

  • Energy markets are higher, the US$ is lower, DOW and S&P futures are higher. 

Corn

  • This week’s storm system that brought snow and rain offers support to the corn market. Some forecasts call for another system next week to travel across the upper Midwest bringing rain to the same general area that just got hit.

  • Overall global demand for US corn appears muted as weekly US exports continue to fall slightly behind the pace needed to hit the current USDA estimate.

  • Argentina and Brazil appear to be on pace to avoid any major production scare as production estimates continue to rise. The Buenos Aires Grain Exchange pegs Argentina’s harvest at 21% complete, citing record high early corn yields.

  • The May corn consolidates and sits about a nickel above its contract low of $3.55 ¼.

  • Spreads: K/N 8 ½ carry, N/U 8 ¼ carry, U/Z 11 ½ carry, Z/H 14 carry, Z/N 27 ¾ carry. 

Outlook:  Trading steady/better 

Oilseeds

  • The soy complex remains supported on optimism that a US/China trade deal will provide the US with demand for the large supply. China’s March soybean imports were down 13.1% from last year.

  • Delayed fieldwork and planting concern surrounding corn could very likely lead to more soybean acres, capping any potential bounce from a trade deal.

  • Buenos Aires Grain Exchange reports Argentina harvest at 17% complete. It appears both Brazil and Argentina production estimates continue to rise as late season rains were beneficial. Brazil harvest winds down.

  • The May contract continues to not stray too far from $9.00 and SMK has so far failed to test $300.00.

  • June Malaysian palm oil closed down 8 ringgit overnight and China’s Dalian beans were also lower.

  •  Spreads: K/N 13 ¼ carry, N/X 19 ¼ carry, X/F 10 carry, X/N 32 ¼ carry. 

Outlook:  Trading steady/better 

Wheat

  • A quiet and subdued overnight session as prices try to consolidate in the absence of fresh news.

  • France AgriMer lowered its soft wheat conditions rating 1% to 83% G/E, but remains 5% above last year’s ratings.

  • Algeria is reported to have purchased 540tmt optional origin yesterday, with France and possible US reported. Egypt’s GASC also tendered yesterday afternoon.

  • This week’s winter storm across parts of South Dakota, North Dakota and Minnesota is likely to reduce spring wheat acres in South Dakota as early seeding provides the optimal timeframe for production. Later seeded spring wheat brings with it a greater possibility of production shortfalls.

  • Spreads; Mpls K/N 5 ½ carry, U/Z 15 carry: Kansas City K/N 6 ¾ carry, N/U 11 carry, U/Z 23 ¼ carry:  Chicago K/N 4 ¼ carry, N/Z 24 carry. 

Outlook:  Mixed in consolidating trade