Morning Highlights


Highlights

  • China issued a statement proposing to set import tariffs against $60 Billion in U.S. goods taking effect on June 1st.
  • Amidst continuing trade tensions between the U.S. and China, President Trump tweeted this morning that China should not retaliate against the U.S. tariffs as it will only get worse for China.
  • Export Inspections will be released at 10:00 AM Central and Crop Progress will be released this afternoon at 3:00 PM Central.
  • Vietnam’s government reported today that they have culled over 1.2 million pigs infected with African swine fever.
  • Outside markets as of 7:15 AM CT: Dollar at 97.303 down 0.027, crude oil at $62.85 up $1.19, gold at $1281.80 down $3.90.

 Corn

  • Corn traded mostly lower overnight as the weather forecast is improving in much of the U.S., which could allow for planting to pick up. Corn is also pressured lower by the large ending stocks seen in Friday’s WASDE report.
  • Corn planting is estimated to be between 30 and 35%, behind the average of 66%.
  • Chinese corn traded 5 ¼ cents higher before settling at 1939 yuan per ton.
  • Spreads: N/U 9 ¼ cent carry; U/Z 11 ¼ cent carry; N/Z 20 ½ cent carry; Z/H 14 ¼ cent carry.

 Outlook:  lower on large stocks and improving weather.

 Oilseeds

  • Soybeans traded mostly lower overnight amidst concerns regarding the U.S.-China trade deal, as well as the large ending stocks shown on Friday’s WASDE report.
  • Planting progress is estimated to be between 10% to 12%, versus last week’s 6% planted.
  • Chinese soybeans traded 3 ½ cents higher overnight before settling at 3463 yuans per ton. Chinese soymeal and soyoil traded lower.
  • Spreads: N/Q 6 ¾ cent carry; Q/X 17 ½ cent carry; N/X 24 cent carry; X/F 13 ¾ cent carry.

 Outlook: lower on continuing trade tensions.

 Wheat

  • Wheat traded lower overnight in sympathy with corn, as well as on large ending stocks from Friday’s WASDE report.
  • Estimate’s for today's crop progress report are between 30 and 40% planted for spring wheat.
  • The Taiwan Flour Millers’ Association issued an international tender to purchase 111,050 tonnes of grade 1 milling wheat to be sourced from the U.S. The tender deadline is May 21st.
  • Ethiopia provisionally purchased 400,000 tonnes of optional origin wheat in a tender that closed on April 19th European traders reported today. The wheat was purchased for $244.34 a tonne.
  • Spreads: Chicago N/U 8 ½ cent carry; Kansas City N/U 11 cent carry; Minneapolis N/U 8 ¼ cent carry.

 Outlook: lower on plentiful supplies and improving crop conditions.