Morning Highlights


Highlights

  • Outside markets as of 7:00AM DJIA at 25,862 up 214, Dollar Index at 97.927 up 0.072, and crude oil at $63.28 up 0.41.
  • Commitment of Traders will be released this afternoon at 2:30 Central time.
  • CHS Hedging is offering a variety of classes 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 continued it’s climb higher overnight, as forecasts continue to show lots of rain in the coming days and weeks. This, coupled with late planting and the large short position by managed money, has created a short covering rally.
  • South Korea’s MFG purchased 69,000 tonnes of corn from optional origins for approximately $184.68 per tonne, with arrival in South Korea near the beginning of December.
  • The French corn crop is 88% planted versus 77% planted a week prior according to the FranceAgriMer.
  • China plans to auction 75,000 tonnes of corn from it’s reserves on May 22nd. The corn was produced between 2015 and 2018, and comes from reserves in Inner Mongolia.

 Outlook:  Higher on weather concerns and short covering.

 Oilseeds

  • Soybeans traded lower overnight as the U.S.-China trade war tensions have continued to weigh on bean prices. The gains in soybeans are likely limited by a large supply and small demand.
  • The China-Canada trade dispute as continues, with China rejecting multiple Canadian shipments of soybeans this week.
  • Chinese soybeans trade 4 ¾ cents lower, settling at 3539 yuans per ton. Soymeal was 0.80 higher settling at 2732 and soyoil was 20 cents higher settling at 5478 yuan per ton.
  • August palm oil was 2 cents higher, settling at 2098.

 Outlook: Lower on large stocks.

 Wheat

  • Wheat futures traded higher overnight, as Chicago and Kansas City wheat have continued to draw strength from corn. Minneapolis wheat traded higher as well, with the July contract trading as high as $5.43 ¾, a price that hasn’t been seen in 5 weeks.
  • 79% of the French wheat crop is in good to excellent condition according to FranceAgriMer.
  • Canadian wheat planting is moving along smoothly, seeing reports that Saskatchewan  planting is at 38%.

 Outlook: Higher on short covering and spillover strength from corn.