Morning Highlights


Highlights

  • After the US increased tariffs on goods from China earlier this month, the Chinese Vice Foreign Minister said the provoking of trade disputes by the US was naked economic terrorism.
  • Outside markets shows the DJIA futures at 25,138 up 28, Dollar Index at 98.050 up 0.015, and crude oil at $58.80 down 0.01.
  • First quarter GDP estimates are to be released this morning, estimates are for a minimal decrease from the 3.2% released earlier.

 Corn

  • Corn is higher overnight after yesterday’s volatile performance that ultimately ended with a couple cent correction.
  • Planted acres is the topic of debate across the Corn Belt as final planting dates for insurance purposes are very close to being reached with a vast number of acres to be planted yet. The consensus is acres will go unplanted or drowned out and the USDA estimate from March of 92.8 million acres is far too high.
  • Yield losses have occurred in the past when planting is delayed like it is this year, but acreage is the focus of the market for the time being.

 Outlook:  Higher on wet conditions and planting delays.

 Oilseeds

  • Soybeans were higher on the overnight, finding support from yesterday’s lows.
  • Final planting insurance dates for soybeans go well into June so there could be a large amount of corn acres that go to soybeans. However, with corn around $4.40 for new crop futures and new crop soybean futures around $9.00 with no trade deal in sight and no clear understanding of the MFP payments from the government, planting soybeans instead of corn isn’t guaranteed.
  • Chinese soybeans were 12.25 cents lower, settling at 3666 yuan per ton. Soymeal was 2 cents higher settling at 2925 and soyoil was 3 cents lower settling at 5504 yuan per ton.
  • Malaysian palm oil was unchanged, settling at 4482 ringgits.

Outlook: Higher on wet conditions and planting delays.

 Wheat

  • Wheat futures were higher overnight after yesterdays correction, tracking with corn.
  • US conditions have deteriorated with the excessive rains and are expected to continue to. Protein content is becoming more of a concern for the winter wheat with the cool and rainy weather on top of possible disease damage.
  • Dryness in the FSU is raising worries for their wheat crop as the forecasts continue to call for more dry weather.
  • South Korea’s Feed Leaders Committee bought 60,000 MT of feed wheat as well as 60,000 MT of corn and 60,000 MT of soymeal without issuing an international tender.

 Outlook: Higher on wet conditions and spillover strength from corn.