Morning Highlights


Highlights                

  • Grain markets will open this morning at 8:30 a.m.There was no overnight trade.Calls will likely be a mixed bag, so either side of unchanged to start out.Wheat may open a bit weaker, but corn and beans could stay steady to firmer.
  • The forecasts into next week appear to have a few more rain chances across the Midwest.Heavy rains showing up this morning across Nebraska and S. Dakota.
  • Chinese sources saying they will make some ‘goodwill’ purchases of US beans, corn, and pork as trade talks set to resume.
  • The weekly CFTC report will be delayed until Monday.
  • The monthly USDA supply and demand report for July will be released next Thursday, 7/11.
  • U. S. Dollar index +.244 @ 96.962, Dow futures -67 @ 26,906, Crude Oil futures -.58 @ $56.77.

        

Corn

  • Weekly ethanol production was up 9k to 1.081 mil bpd.Total ethanol stocks increased 1.28 mil to 22.84 mil barrels. This was a rather large weekly stocks total increase.
  • CN/U spread pinched back in to -2 ½ before settling at -3 ¾ , while CZ/Z20 moved from +10 to +21.
  • Eastern corn belt basis remains extremely firm July forward. $5.00+ cash delivered bids posted in select areas.
  • CU/KWU narrowed to -.07 cents, posting the tightest this spread has seen this year.
  • USDA weekly export sales were 175,000 old crop and 156,000 tons new crop.  No new milo sales.

 Outlook: trade volumes were fairly low Wednesday, but prices moved sharply higher. For the short-term, folks must feel a bottom is in.  The market was all about the front-end futures months.  Cash basis premiums trading higher in the east may continue to pull spreads and futures higher.

 

Oilseeds

  • USDA weekly export sales for last week show 867,000 tons old crop - including previously announced China sales, and 161,000 tons new crop. Meal sales were 16,800 tons with 8,600 new crop.  Bean oil sales were 19,700.  

 

Outlook: lifted higher on the back of firmer corn trade. 

 

 Wheat

  • Still no Chicago July wheat deliveries.Only 5 were for KC, and nothing new.
  • USDA weekly export sales for all wheat were 276,000 tons. 
  • Algeria bought 360k tons of milling wheat in their tender this week [one report as 420k]. C&F prices ranged from $216.00-$217.50 / ton. Likely French or N. European origin.
  • WU/KWU spread now showing +.70 cents premium Chicago.

Outlook: wheat tagged along higher with corn. Harvest activity rolled through the 4th with yields holding up well across Kansas.