Morning Highlights


Highlights

  • Precipitation models for this weekend are still calling for upwards of 2 inches of rain across the eastern corn belt. The 6-10-day forecast continues to call for above average precipitation and below average temperatures across the Midwest as well.
  • CHS Hedging is offering an Energy Risk Management class on June 19th, Grain Hedging classes on June 25th, and a Technical Analysis class on June 26th.
  • The Commitment of Traders report will be released today at 2:30 pm central time.
  • At last look the US Dollar index was up 0.100 to 97.113 points.
  • The Dow Jones mini futures are down 28 points overnight to 26,089.
  • The energy markets lower overnight. Nearby crude is down $0.15 to $52.13 per barrel.

    Corn

  • The corn market moved higher again overnight as we broke through the highs set yesterday.
  • Turkey has now received offers in their tender for 100,000 tonnes of corn. The lowest offer came in at $195.88 a tonnes C&F.
  • FranceAgriMer reported that the French corn crop is at 82% good/excellent, unchanged from last week.
  • The last time front month corn futures hit the overnight high of $4.47 ½ was on June 24th, 2014.
  • Chinese corn futures were down 6 ¼ cents overnight.
  • Spreads: N/U 4 ¼ cent carry, N/Z 11 ¾ cent carry, Z/H 4 ¾ cent carry, Z/N 6 ¼ cent carry.

    Outlook: Higher off the open as weather concerns continue to be a key driver in moving this market higher.

    Oilseeds

  • The soybean market moved higher with the corn market in the overnight, as well on growing concerns over the long-range forecasts.
  • Kazakhstan is implementing a program to raise domestic soybean production up to 3 mmt annually over the next 5 years through government incentivized programs for growers. This continues the recent trend of more production coming out of the region.
  • November soybeans broke through their 100-day moving average of $9.16 ½ overnight. The next point of resistance comes from the recent high of $9.21 ¼.
  • Malaysian palm oil was up unchanged at 2,008 ringgits overnight. Weekly change of down 20 ringgits.
  • Chinese soybean futures were down 7 cents overnight.
  • Spreads: N/Q 6 ¾ cent carry, Q/U 7 cent carry, U/X 13 cent carry, X/N 32 ¾ cent carry.

    Outlook: Choppy to higher trade as weather and planting concerns are met with concerns of an oversupplied market.

    Wheat

  • The wheat markets all moved higher in the overnight with corn, but the winter wheat markets did gain another penny over spring wheat.
  • Taiwan flour mills tender to buy 83,200 tonnes of wheat expected to be sourced from the US.
  • Mexico’s wheat chamber Canimolt is estimating Mexico’s wheat imports to rise 200,000-300,000 tonnes in 2019. They also expect that imports from the US could reach as much as 4 mmt for 2019.
  • Spreads: N/U Chicago 2 ¾ cent carry, KC 13 cent carry, Mpls 7 ½ cent carry.

Outlook: Higher trade off the open as the extended forecasts are also causing concerns for the winter wheat crops.