Morning Highlights


Highlights

 

  • Cooling temperatures will move through much of the Midwest this week as pollination begins for the corn crop. A cold front will push into the Plains and Delta later today.

  • August crude oil was up $0.61 a barrel trading at $56.22 a barrel. Crude continues to trade higher with Iran’s seizure of an oil tanker last week.

  • China is talking about restarting talks with the US after showing several goodwill gestures over the weekend. Over the weekend, China rejected 604 tonnes of alfalfa from the US for having unapproved strains of GMO’s.

  • The Cattle On Feed and Cattle Inventory reports was released at 2:00pm Friday.  The USDA put Cattle on Feed at 102.0%, Placed at 98.0%, and marketings at 97.0%. The  Inventory report put US inventories at 103 million head unchanged from last year.

  • Outside markets as of 7:00am CT: Dollar up 0.84 at 97.235, the Dow off 68.77 at 27154.20 and gold is off $0.60 at $1426.10.

     

Corn

  • Corn traded mostly lower overnight as improving weather for pollination and a lack of buying by funds has corn down six cents.

  • Funds are currently net long 187,260 contracts.

  • Corn on the Dalian exchange traded 6 cents lower at 1,914 yuan per tonne.

 Outlook:  4 to 6 cents lower on better weather.

 

Oilseeds

  • Soybeans traded mostly lower overnight as improving weather and weaker demand (China’s continued “talk “of buying US ag products but hasn’t) has traders feeling defensive. Soybeans were off 3 ¾ cents.

  • Malaysian palm oil traded 11 ringgits higher at 1983 per tonne, higher crude oil is supporting palm.

  • Soybeans on the Dalian exchange traded 1/2 cent higher at 3,383 yuan per tonne. Soybean meal was off $2.60 per tonne at 2,810 yuan per tonne.

 Outlook:  3 to 5 cents lower.

 

Wheat

  • The Wheat Quality Council’s Hard Spring Wheat and Durum Tour starts today.  You can follow CHS Hedging’s tour participant on Twitter at our homepage CHS Hedging or Twitter .

  • The VSR (Variable Storage Rate) evaluation period for KC and Chicago wheat begins Monday and goes through August 23rd, using the September/December 2019 spread. 

  • IKAR, a Russian ag consultancy, lowered its estimate of Russian grain production to 120.2mmt. They also lowered wheat exports for the coming year to 33.2 mmt down from 34.3 mmt.

    Outlook: 2 to 4 cents lower.