Morning Highlights


Highlights                

  • Grain markets will be closed this Thursday for 4th of July. No night session, with a hard open on Friday at 8:30 a.m. Also, markets will close early at noon on Wednesday.
  • The Upper Mississippi River is now re-opened for navigation past St. Louis. However, tow size limitations remain due to high currents.
  • Weather forecasts seem mostly clear for several days, but rains return late week and into the weekend.
  • Chinese sources saying they will make some ‘goodwill’ purchases of US beans, corn, and pork as trade talks set to resume.
  • U. S. Dollar index -.044 @ 96.695, Dow futures +49 @ 26,846, Crude Oil futures +.47 @ $56.73.

        

Corn

  • CZ19 50% retracement level is at $4.18, from the May 13th low to the June 17th high. It came within ½ cent of filling the gap in Dec corn. $4.19 is also the 50 day moving average, which may turn into solid support. Follow through support to the upside in overnight trade.
  • Brazil corn exports for June were high, at 2.6 mil tons, versus last year June at 1.0 mil tons. Large vessels lineups for Brazil and Argentina. AgRural puts Brazil safrinha [2nd crop] corn harvest at 32% complete.
  • July corn deliveries continue to recirculate.

 Outlook: corn buyers returned to the sandbox, as futures turned higher at mid-morning. But values just sat there, 3-4 cents higher for the remainder of the session. We didn’t seem to go anywhere, just held modest gains off the lows.  Downside momentum appears to be waning.  Calls: 3-5 better.

 

Oilseeds

  • Further technical selling in the bean complex yesterday, continued the drag lower in prices.
  • A few areas still trying to plant beans.And some beans after wheat going in as well.
  • July meal deliveries continue to recirculate.

 

Outlook: yesterday’s earlier morning ‘bounce’ disappeared quickly, as prices declined again for most of the session. China saying they will buy US beans to help kick start the trade talks. Calls: 3-4 better

 

 Wheat

  • Egypt tendered and bought 1 cargo, 60,000 tons of Romanian wheat paying $196.71/ton on a fob basis. Russian wheat was offered from $198.86-$209/ton.US HRW or SRW would have been $25-$30/ton higher at least. Algeria also tendering for optional origin milling wheat for August shipment, with offers due tonight.Also, Tunisia may be tendering this week for wheat.Japan is in for their weekly wheat tender.
  • Some areas of SW Kansas reporting wheat yields from 60-80 bpa range. Protein levels remain steady in most areas. Not as low as some had feared, reports ranging from 10.5% -12%. Test weights are slipping a bit due to late rains, but remain acceptable. Most areas on average seeing TW and proteins lower than last year, but yields are coming in real good.
  • Wheat harvest in Ukraine is said to be 11% complete.

Outlook: the wheat complex got ‘drilled’ again yesterday, as great harvest weather predominated across the wheat belt. US grain was not a player in ongoing export business this week. Calls: 3-5 higher