Morning Highlights


Highlights

  • Chines officials deny any call took place over the weekend about China wanting to hold talks geared toward a resolution to the current US/Chinese trade war (and the saga continues).
  • The energy markets are mostly higher with crude oil up 66 cents at $54.30/barrel and has been in a range from $52-$57 over the past week.
  • The US$ is softer, dipping below 98 points, the gold market is 2-3 bucks higher at 1530 and the CD$ is up a freckle at 0.7561.
  • StatsCan production report is scheduled for Wednesday, August 28th.
  • The next USDA S&D report is scheduled for September 12 at 11 AM CDT.Ideas are that the markets will bide time now until the release of the report on the 12th.
  • First Notice Day for September futures is Friday.....all long positions are to be reported after the close on Thursday.  

Corn

  • The corn market traded lower in sympathy with the soybean market.
  • The USDA reported crop conditions at 57% G/E up 1% from last week and in line with expectations.Am being told the crop is benefiting from the rain events moving across the Upper Midwest, but still has a long way to go before maturity. The crop was rated 71% dough stage versus 87% on average.
  • Spreads: Z/H 12 ¼ carry, Z/N 26 ¾ carry, N0/Z0 8 carry. 

Outlook:  lower trade on crop conditions and spillover weakness in the beans 

Oilseeds

  • The soybean market traded lower on improving crop conditions. The crop is said to be 2-4 weeks behind and could use some warmer temps to help finish it along.
  • The USDA the soybean crop at 55% G/E up 2% from last week. Am hearing that this week’s rain events should continue to be beneficial to the bean crop.
  • November palm oil closed down 30 at 2,239 ringgit. Chinese beans were up 17 cents, meal down 1.25 and oil down 34 points.
  • Spreads: U/X 13 ¾ carry, 84% of full carry at 16 cents, X/F 14 carry, F/K 24 ½ carry, X/N 49 ¼ carry. 

Outlook: lower trade on improving crop conditions   

Wheat

  • The wheat market traded mixed, with Mpls catching a slight bounce after making new contract lows. Gains were limited from decent harvest progress in the spring wheat.
  • The USDA reported spring wheat harvest at 38% complete versus expectations closer to 29% complete.
  • The lowest offer in the Egyptian tender is at $193.86/tonne (French).
  • South Korea looks to purchase 30k tonnes of US or Canadian wheat.
  • Spreads: Mpls U/Z 18 ¾ carry near 70% of full carry (26 cents) .......Kansas City U/Z 13 carry, 46% of full carry at 28 cents. 

Outlook: under pressure from harvest progress, plentiful supplies and lack of demand