Morning Highlights


Highlights

  • The People’s Bank of China set the yuan at 6.9683 per dollar. This is stronger than a Reuter’s estimate of 6.9736.
  • As of 7:00 AM Central, September crude oil is $55.10 up 0.42 per barrel, the Dollar Index is 97.638 up 0.116, and gold is $1,463.50 down $1.10.

 Corn

  • Corn traded lower overnight, on spillover weakness from wheat. Additional pressure comes from a crop progress report that was within expectations, and a large world crop.
  • The USDA crop progress report showed corn silking at 78% versus the 5-year average of 93%; dough at 23% versus the 5-year average of 42%; and conditions at 57% good to excellent versus the prior week at 58%.
  • The Ukrainian Ag Ministry raised their planted acreage number, which led UkrAgroConsult to raise their corn crop estimate from 33 million tonnes to 34.2 million tonnes.
  • South Korea’s Korea Corn Processing Industry Association rejected all offers received in their tender for 55,000 tonnes of corn, on thoughts that offers near $215 per tonne were too high.
  • Spreads: U/Z 9 ¼ cent carry; Z/H 10 ½ cent carry; U/H 19 ¾ cent carry.

Outlook:  3-4 lower on lack of fresh news.

 

Oilseeds

  • Soybeans traded higher overnight, on a technical bounce as the market takes a break from the recent sell off.
  • The USDA crop progress report showed soybeans blooming at 72% versus the 5-year average of 87%; setting pods at 37% versus the 5-year average of 63%; and conditions at 54%, unchanged from the prior week.
  • There were 1,131 deliveries of August soybeans, 572 deliveries of August soymeal, and 213 deliveries of August soyoil.
  • Chinese soybeans were up 7, settling at 3,426 yuan per ton. Soymeal was up 1.70 settling at 2,886, and soyoil was up 46 settling at 5,864 yuan per ton.
  • Spreads: U/X 13 cent carry; X/F 13 ¼ cent carry; U/F 26 cent carry.

 Outlook: 1-2 higher on a technical bounce.

 

Wheat

  • Wheat traded lower overnight, as the USDA crop progress report was in line with expectations. A good harvest and lack of business adds pressure to the market, as the U.S. and world have plentiful wheat stocks.
  • Spring wheat conditions were 73% good to excellent, unchanged from the prior week; Spring wheat harvested was 2% versus the 5-year average of 14%. Winter wheat harvest was 82% versus the 5-year average of 92%.
  • The French farm ministry raised their soft wheat harvest estimate from 37.0 million tonnes last month to 38.2 million tonnes this month.
  • Spreads: Chicago U/Z ½ cent carry; Kansas City U/Z 16 ¾ cent carry; Minneapolis U/Z 11 cent carry.

  Outlook: Lower on harvest pressure.