Morning Highlights


Highlights

  • Ag markets will be closed Sunday evening and Monday in observance of the Labor Day Holiday.Trade will resume Monday evening at 7 PM Chicago Time.
  • The energy markets are mostly higher with crude oil up 49 cents at $56.26/barrel.
  • The US$ is up slightly, continuing to hold above 98 points. The gold market is 1-2 bucks lower at $1,541/ounce and the CD$ is up a freckle at 0.75345.
  • DJIA up 258 at 26036, S&P up 29 at 2918 and the NASDAQ last at 7856.
  • Weekly export sales estimates: Wheat 250-700 tmt, corn 400 tmt-1.050 mmt, beans 150 tmt-1.0 mmt, meal 100-350 tmt and soyoil 0-25 tmt. Report at 0730 hours today.  

Corn

  • The corn market traded slightly higher overnight. Most months are 2-3 cents higher with 2-3-cent trading ranges.
  • South Korea (NOFI) bought 69k tonnes of optional origin corn for December shipment. Flat price for 40k tonnes was at $199.15/tonne C&F and 29k was prices at plus $1.34 the Dec.
  • Ethanol margins remain under pressure, despite weakness in corn prices.
  • China’s corn prices were down 3 ¼ cents overnight.
  • Broiler egg sets for the week ending August 23rd were reported at 103% of last year, with placements at 101% of last year.
  • December corn sits just above the $3.70 support level.
  • Spreads: U/Z 8 ¼ carry, Z/H 10 ¾ carry, Z/N 24 ½ carry, Z/Z 29 ¾ carry. 

Outlook:  Choppy, sideways trade ahead of the long weekend and end of month 

Oilseeds

  • The soy complex traded mostly higher overnight on crop concerns. Soyoil was a freckle easier. Most months are up 3-4 cents with a 4-5-cent trading range.
  • Temperatures are expected to be on the cool side over the next several days, which could slow development of the bean crop.
  • November palm oil closed down 32 ringgit at 2,221.
  • China beans were up 2 ¾ cents, meal was up $4.50 and palm oil was down 22 points.
  • Mato Grosso (one of Brazil’s main soybean areas) is extremely hot and is expected to result in the delay of this year’s soybean plantings.
  • Spreads: U/X 12 ¾ carry, X/F 13 ¼ carry, F/K 23 ¼ carry, X/N 47 carry. 

Outlook:  slightly firmer trade on concerns of slowing crop development  

Wheat

  • Wheat prices continue to falter on ample world supplies and harvest pressure as the spring wheat harvest gets underway once again. Mpls is down a freckle, KC is down 1-2 cents and Chicago is down 2-4 cents. The overnight session saw 1-2 cent trading ranges in Mpls and KC and 4-5 cent trading ranges in Chicago.
  • Weather conditions look to be mostly favorable for the northern plains over the next several days.
  • Rain events are expected across the Southern Plains over the next couple of weeks with mostly cooler temperatures. Soil beds should get re-charged with moisture for the start of winter wheat seeding.
  • The Russian wheat harvest is estimated at 63% complete with total production estimated at 75.0 mmt.
  • Spreads: Mpls U/Z 18 ¼ carry (could see deliveries in Mpls with outstanding receipts in Duluth sitting at 1,175 contracts) .......Kansas City U/Z 12 carry and Chicago U/Z 3 ½ carry. Mpls Sep sits at a 95-cent premium over Kansas City Sep. 

Outlook: lower trade expected on ample supplies and harvest pressure ahead of the long weekend