Morning Highlights


Highlights

  • As of 7:00 AM, the DJIA was at 25532, up 207; the dollar was at 97.637 up 0.111; gold was at $1296.90 up $2.20; crude was at $61.24 down 0.54.
  • China’s Ministry of Agriculture reported that their sow herd fell 22.3% in April and their overall hog herd declined by 20.8% from the previous year.
  • Last trading day for May Feeder cattle futures and options is on Thursday, May 23rd.
  • CHS Hedging is offering a variety of classes this summer, including Grain Hedging I & II, Introduction to Technical Analysis, and Energy Risk Management. For more information and to register please visit www.chshedging.com.

 Corn

  • Corn traded higher overnight, drawing strength from delayed planting and short covering by the funds. The Midwest continues to look soggy in the weather forecast, which could further delay corn planting.
  • Corn futures are climbing higher, with the December contract setting a 7-week high. December corn also traded above it’s 100-day moving average of $3.94 ¼ this morning.
  • FranceAgriMer raised its ending stocks projection for corn from 2.6 million tonnes to 2.7 million tonnes.
  • A private analyst lowered their Ukraine corn harvest forecast from 35.6 million tonnes to 33.7 million tonnes for 2019. Their corn export estimate for 2019/2020 was lowered from 26.8 million tonnes from 25.5 million tonnes.
  • Spreads: N/U 8 ¼ cent carry; U/Z 9 ¾ cent carry; N/Z 18 cent carry; Z/H 11 cent carry.

 Outlook:  Higher on continuing weather concerns.

 Oilseeds

  • Soybeans traded higher overnight on short covering and planting concerns. Wet weather continues to be in the forecast for the next few weeks.
  • November soybeans are nearing their 20-day moving average of $8.71 ¾ this morning, although they have not trade to this level today.
  • NOPA Crush will be released today at 11:00 AM Central.
  • Chinese soybeans traded 4 ¼ cents higher overnight before settling at 3531 yuan per ton. Soymeal traded 1.70 higher settling at 2680 yuan per ton, and soyoil was 8 cents higher settling at 5415 yuan per ton.
  • Palm oil settled at 2045 overnight, up 12.
  • Spreads: N/Q 6 ¾ cent carry; Q/X 17 ¾ cent carry; N/X 24 ½ cent carry; X/F 12 ¼ cent carry.

 Outlook: Higher on short covering and wet weather.

 Wheat

  • Wheat traded higher overnight, following corn and beans.
  • Jordan retendered for 120,000 tonnes of milling wheat from optional origins, with a deadline of May 21st.
  • Australia will begin importing wheat from Canada as drought continues to present challenges to the area.
  • FranceAgriMer raised its forecast of soft wheat exports outside the EU from 9.7 million tonnes to 9.75 million tonnes.
  • Tunisia received an offer of $195.02 per tonne for soft milling wheat in their tender for 75,000 tonnes. A purchase has not yet been made but results are expected later today.
  • A private analyst raised their Ukraine wheat harvest to 26.2 million tonnes from 24.6 million tonnes. They raised their 2019/2020 exports estimates from 15.7 million to 16.2 million tonnes.
  • Spreads: Chicago N/U 7 cent carry; Kansas City N/U 10 ¾ cent carry; Minneapolis N/U 8 ¼ cent carry.

  Outlook: Higher on short covering and support from corn.