Morning Highlights


Highlights

  • President Trump has tweeted that the U.S. is now “in a much better position” within the U.S.-China trade deal. He also tweeted that “It will all happen, and much faster than people think. A Chinese spokesperson, Geng Shuang, said today that China is ready to meet the U.S. in the middle regarding negotiations.
  • Today is the last trading day for May grains, oilseeds, and hogs.
  • Cotton will have expanded limits today of 4 cents per pound (400 points).
  • As of 7:00 AM, the DJIA is at 25324 down 617 points; the dollar index is at 97.326 up 0.007; Gold is at $1296.80 down $3.30; and Crude is at $61.83 up $0.79.

 Corn

  • Corn trade higher in the overnight session, drawing strength from the below average corn planting numbers.
  • Taiwan’s MFIG has tendered to purchase 65,000 metric tonnes of corn in a tender closing on May 16th for summer shipment.
  • France’s corn crop is estimated to increase almost 5% from last year, rising to 1.43 million hectares.
  • The crop progress report showed corn planting came in at 30%, which was well below the 5-year average of 66%. Corn emerged was also well behind the average of 29%, coming in at 10%.
  • A private crop scout left his forecast for the Brazil corn crop unchanged at 97.0 million tonnes, and his Argentine forecast unchanged at 49.0 million tons.
  • Corn had 79 deliveries, which brings the month to date total to 4,365. The next delivery date is 5/13/2019.
  • Spreads: N/U 8 ¾ cent carry; U/Z 10 ½ cent carry; N/Z 19 ¼ cent carry; Z/H 12 cent carry.

 Outlook:  Higher on continued slow planting concerns.

 Oilseeds

  • Soybeans traded higher overnight on a combination of short covering and concerns due to slow planting pace.
  • NOPA April crush report is scheduled for Wednesday, May 15th.
  • Yesterday’s crop progress report showed soybeans planted at 9%, well behind the average of 29%.
  • Chinese soybeans traded higher overnight, rising 22 ½ cents before settling at 3520 yuan per ton. Chinese soyoil was 13 cents higher settling at 5402 yuan per ton, and soy meal was higher settling at 2667 yuan per ton.
  • A private crop scout left his Brazil bean crop forecast unchanged at 117.0 million tonnes, and his Argentine forecast unchanged at 56.0 million tonnes.
  • Soybeans had 236 deliveries, bringing the month to date total to 6,895. The next delivery date is 5/13/2019. Soymeal had 1 delivery, bringing the total to 2,024 with the next delivery date of 05/07/2019. Soyoil had 28 deliveries bringing the total to 4,213 with the next delivery date of 5/10/2019.
  • Spreads: N/Q 6 ¾ cent carry; Q/X 18 ½ cent carry; N/X 25 ¼ cent carry; X/F 13 ¼ cent carry.

 Outlook: Higher on behind average planting and short covering after fresh contract lows.

 Wheat

  • Wheat traded higher overnight in technical trade.
  • Tunisia tendered to purchase 75,000 tonnes of soft wheat,
  • Jordan did not make a purchase in their tender for 120,000 tonnes of wheat.
  • Germany’s 2019 wheat crop is pegged to increase almost 20%, rising to 24.28 million tonnes.
  • The crop progress report showed U.S. winter wheat headed at 42%, behind the average of 54%. Winter wheat condition was 64% good to excellent, 28% fair, and 8% poor to very poor. Spring wheat was 45% planted versus the average of 67% and 10% emerged versus the average of 34%.
  • Minneapolis wheat had 40 re-deliveries. Chicago wheat had 23 deliveries, bringing the month to date total to 2,373 contracts with the next available date being 5/10/2019. Kansas City had 0 deliveries.
  • Spreads: Minneapolis N/U 8 ½ cent carry; Kansas City N/U 10 ½ cent carry; Chicago N/U 7 ½ cent carry.

 Outlook: Higher on continued bargain buying.