Morning Highlights


Highlights

  • Grains: corn up 9-10 cents, beans up 15-16 cents, meal up 3 bucks, oil up 5 points and wheat up 6 in Mpls, 8-9 in Kc and 9-10 cents in Chicago.
  • The Chinese government holds their first soybean auction of the year, selling 216k tonnes of their 2013 harvest.
  • Planting delays continue with more rain in the forecast over the next couple of weeks.
  • Japan plans to continue purchasing wheat from the US despite the detection of GMO wheat in Washington.
  • Energy markets are weaker with crude oil trading just below $52/barrel.
  • The US$ and the gold market are weaker. The CD$ and the equity market is slightly higher.
  • The USDA’s updated acreage and June 1 grain stocks report is scheduled for June 28th at 11 AM CDT.
  • July options expiration is at the close on Friday. FND for July futures is Friday June 28th. 

Corn

  • Higher trade overnight on weather concerns. Forecasts suggest scattered rain events across the US Midwest for the next 10 days, bringing as much as ¾-1 ½” rain.
  • Taiwan seeks 30k tonnes of corn for Aug/Sep shipment.
  • Planting progress is expected to be near 90% to 95% complete versus 100% on average. Conditions are thought to have improved slightly although will most likely still be near record low levels. Last week was at 59% G/E.
  • Spreads: N/U 5 ½ carry, U/Z 5 carry, Z/H 3 ¼ carry, N20/Z20 55 inverse. 

Outlook:  higher trade on weather 

Oilseeds

  • The soybean market traded higher on concerns of planting delays. The 6-10 Day weather outlook calls for more rain over the Us Midwest.
  • Planting progress is expected to be 81-83% complete versus 93% on average. We may possibly see a conditions report for soybeans this week.
  • NOPA crush report for May: average trade estimate at 162.474 mb (157.0-165.2). Report is scheduled for release today around 11 AM CDT. April crush was at 160.0 mb and Last May’s crush was at 163.6 mb.
  • Taiwan seeks 65k tonnes of soybeans for Aug/Sep shipment.
  • Palm oil prices were higher on a weaker ringgit and borrowed strength from the US soy complex. The September contract closed up 16 at 2,034 ringgit.
  • China markets were up 3 ½ cents in beans, 7 bucks in meal and 18 points in oil.
  • Spreads: N/Q 6 ¾ carry, Q/X 20 carry, X/F 11 carry, X/N 24 ¾ carry. 

Outlook: Higher trade on weather 

Wheat

  • Wheat prices were higher overnight in sympathy with the row crops.
  • Syria looks to purchase up to 200k tonnes of Russian wheat for July-Sep.
  • There are chances for rain showers across the eastern part of the Southern Plains this week.
  • Australia’s wheat area received beneficial rains for their developing wheat corp.Ideas are that they will reap a crop near 20.0 mmt, which compares to the USDA at 22.5 mmt.
  • Spreads: Mpls N/U 6 ¾ carry, U/Z 10 ¼ carry, Kansas City N/U 12 ¼ carry, Chicago N/U 4 carry. 

Outlook: higher trade on row crop strength