Morning Highlights


Highlights

 

  • Cargill rethinking and Marubeni is ending trading ties to with China going forward.

  • China’s pork production is expected to decline to 48 mmt in 2019, that’s down from 54.04 mmt in 2018. Pork production is expected to decline further in 2020 to 44.2 mmt.

  • September crude oil was up $0.83 a barrel trading at $56.71 a barrel. Gold is off 10 points at $1,425.90 per troy ounce.

  • August grain and oil seed options expire today, first notice day is Wednesday, July 31st for soybeans, soybean meal and soy oil.

  • The Dow was off 0.24%. Asian markets were higher, the Hang Seng was up 11 points at 28,396.0, the Nikkei was off 98.4 trading at 21,658.13, and the Shanghai composite was climbed 0.24% t0 2,944.5.

     

Corn

  • Sept. corn traded mostly lower in a narrow range last night from $4.19 ½ to $4.16 ½. Weak exports and improving weather pushed markets lower.

  • Technical support was breached overnight at $4.17 ¾ opening the possibility to challenge $4.04 ¾.

  • French corn crop is rated at 67% good/excellent, down 8% from the previous week.

  • Corn on the Dalian exchange settled 1 ¾ cents lower at 1,922 yuan per tonne.

 Outlook:  2 to 3 cents lower.

 

Oilseeds

  • November soybeans traded in a very narrow range overnight, from $9.02 ¾ to $8.98 ¼. A challenge of support at $8.92 ¼ is expected due to weak exports and ongoing uncertainty with China.  Soybean meal for August was off $0.20 per ton at $303.70 a ton. Soybean oil was unchanged at 28.27.  

  • China has approved soybean imports from Russia according to China’s General Administration of Customs.

  • EU rapeseed production is expected to decline 3.9% to 18 mmt, the smallest crop in nine years.

  • Malaysian palm oil traded 9 ringgits higher at 2,067 per tonne. Palm recorded the best weekly gains in two months.

  • Soybeans on the Dalian exchange were off 11 cents at 3,375 yuan per tonne. Soybean meal was off $3.00 per tonne at 2,782 yuan per tonne.

 Outlook:  steady to 3 cents lower.

 

Wheat

  • The wheat complex traded lower overnight testing support at $4.94 ¾ setting up a test to $4.72 ¼ for September Chicago wheat.

  • The Wheat Quality Council’s Hard Spring Wheat and Durum Tour concluded yesterday with an estimated average crop of 43.1 bushels per acre, two bushels better than last year’s 41.1 bushels per acre.

  • The EU commission is projecting the EU wheat crop at 141.3 mmt for the 19/20 crop, down 0.7% from last year. EU wheat stocks are expected to drop to 13.7 mmt, down 2.8%. Export are projected to climb to 25.5 mmt.

  • The French soft wheat crop is 63% harvested.

  • China has approved wheat imports from the Kurgan region of Russia according to China’s General Administration of Customs.

  Outlook: 3 to 5 cents lower.