Morning Highlights


Highlights

  • President Trump increased tariffs on $200 billion in goods from China from 10% to 25%. China said there will be a “measured response.”

  • The USDA will release their S & D report today at 11:00 am CDT.

  • The entire Corn-Belt is free of rain for the moment, however, rains are expected to move back into the western Corn-Belt after the 15th while cooler temperatures will persist for the next 5 days.

  • President Trump suggested in a tweet that the US will buy $15 billion in farm products from US farmers and give those goods to poor nations to offset China’s reluctance to buy US farm products.

  • Asian markets are lower overnight, the Hang Seng was off 0.18% at 28,277, ShangHai Composite was down 1.5% at 2,8586. The Nikkei was off 0.27%, the FTSE was up 0.47% trading at 7,240.   

  • Outside markets as of 7:00 am CT: Dollar up .02% at 97.393, crude oil is up $0.29 at $61.96, gold is off 0.2% at $1,283.

     

Corn

  • Corn traded mostly higher overnight, evening up before today’s reports. Technically corn is poised to test support at $3.53 ½ today, if it fails expect a challenge of $3.47 ½.

  • Corn in China was off 1 ¾ cents, trading at 1983 yuan per tonne.

  • For the week ending May 10th July corn futures lost 17 cents. Trade uncertainty and large ending stocks pressured the market lower.    

  • South Korea bought 60 tmt of corn for September delivery at $190.09 per tonne, the seller was thought to be COFCO.

  • There were 134 deliveries with the next available date being May 8th. That brings total deliveries to 4,172 contracts.

 Outlook:  Steady a penny lower ahead of the USDA report.  

 

Oilseeds

  • Soybeans were lower overnight on increasing trade tensions with China. Soybean meal was off $1.10 a ton at $291.70 per ton for July.

  • For the week ending May 10th July soybeans have dropped 30 cents. July soybean meal went down $8.70 per ton. That’s the worst soybeans had their biggest weekly loss since August of last year.

  • Malaysian palm oil futures were off 22 ringgits trading at 1,983 ringgits.

  • Soybeans in China surged higher, up 3 ¼ cents trading at 3,454 yuan per tonne. Soybean meal was up $0.10 a tonne at 2,670 yuan per tonne.

  • There were 300 soybean deliveries, the next available date is May 9th. There were 14 meal deliveries, the next available date is May 7th and 101 soybean oil deliveries with the next available date May 8th.

 Outlook: Steady to two cents lower.  

 

Wheat

  • The wheat complex traded quietly lower overnight. Fort the week ending May 10th July Chicago wheat lost nine cents.

  • The South Korea bought 60 tmt of feed wheat at an expected price of $200.99 per tonne, the origin was optional. The delivery was September 28th to October 17th. South Korea also bought 30 tmt of milling wheat from Australia for shipment in August.

  • Saskatchewan Agriculture said wheat seeding there are in line with five-year averages, 13% this year vs 14% planted for the five-year average.

  • There were 1 Chicago wheat delivery with the next available date May 2nd. There were no winter wheat or spring wheat deliveries.

    Outlook: steady to mixed.