Morning Highlights


Highlights

  • Vice Premier Liu He will be coming with the rest of China’s delegation this week for meetings with the US, however, if the US increases tariffs there will be a response from China.

  • Iran is giving a 60-day notice that they intend to begin enriching Uranium again soon.

  • Rain expected through much of the Midwest today and tomorrow. Forecasts are calling for wetter conditions in the western Corn-Belt 6 to 10 days out and dryer weather East of the Mississippi.

  • Asian markets are lower overnight, the Hang Seng was off 1.23% at 28,995.0, ShangHai Composite was down 1.12% at 2,8586.46. The Nikkei was off 1.46%, the FTSE was off 0.3%.   

  • Outside markets as of 6:15 am CT: Dollar up .04% at 97.551, crude oil is down $0.59 at $61.65, gold is up 0.44% at $1,291.20.

     

Corn

  • Corn traded higher overnight, however, as the session ended corn pressed the market lower. Traders are struggling to figure out if corn planting will increase with current forecasts 7 to 14 days out. 

  • Wet weather the next few days will restrict planting; the question becomes, how soon after the rain will corn get planted. The five-year average for next week is 66%.    

  • There were 273 deliveries with the next available date being May 6th. That brings total deliveries to 3,786 contracts.

 

Outlook:  steady to 1 lower following wheat.  

 

Oilseeds

  • Soybeans were higher overnight. Soybean meal traded higher in quiet trade.

  • Malaysian palm oil futures were off 3 ringgits to 2037 overnight.

  • Soybeans in China were up 4 ¾ cents trading at 3,404 yuan per tonne. Soybean meal was up $1.30 a tonne at 2605 yuan per tonne.

  • China imported 7.64 mmt of soybeans in April. Imports in May and June are expected to be 14 mmt down from last year’s 18 mmt.

  • There were 820 soybean deliveries, the next available date is May 7th. There were 284 soybean meal deliveries, the next available date is May 7th and 420 soybean oil deliveries.

 

Outlook: steady to 2 higher.  

 

Wheat

  • The wheat complex traded lower overnight. Resistance in July Chicago wheat is at $4.46 ½. Support emerges at $4.33 ½, if it fails expect a challenge to $4.26.

  • China will offer 1.05mmt of wheat from its 2013 reserves at a price of 2,210 yuan per tonne.  

  • The US winter wheat crop is in the best shape since 2010. 64% of the winter wheat crop was rated good/excellent last week. That’s compared to last year’s 34%.  

  •  South Korea bought 65 tmt of feed wheat at $204.75 per tonne C&F. The shipment period is Sept. 26 through Oct. 15th.

  • Jordan is re-tendering for 120 tmt of wheat, the retender is for May 14th.

  • There were 10 Chicago wheat deliveries with the next available date May 2nd. There were no winter wheat or spring wheat deliveries.

     

Outlook: 1 to 3 cents lower.