Morning Highlights


Highlights 

  • September grain futures cease trading at noon today.
  • Europe’s Central Bank announced a quantitative easing program yesterday including a deposit rate cut to a record low -.5%.
  • China is on holiday for their Mid-Autumn Festival.
  • FSA’s mid-September acreage update showed only small changes from their August release.  USDA usually incorporates FSA October numbers into that month’s S&D report.
  • Outside markets as of 7:00am CT: Dollar down 343 at 98.017, Crude Oil up $.04 at $55.13, Dow up 111 at 27309 and Gold up $8.30 at $1515.70. 

Corn

  • France’s AgriMer lowered their good/very good corn rating by 1 pt to 61%.
  • USDA lowered their corn production estimate by 102mbu to 13.799bbu, primarily due to lower than average ear counts.
  • Yesterday USDA announced a sale of 113tmt corn to Mexico, that makes 1.042mmt announced for them so far this week, 60tmt of which is for next year – 2020/2021.
  • There were 123 corn deliveries announced yesterday. 

Outlook:  A close today above $3.70 on the December contract would form a key reversal higher on the weekly chart.

 

Oilseeds

  • A newswire reported yesterday that China bought at least 600tmt soybeans for Oct/Dec shipment from the PNW; traders will be watching USDA daily announcements for confirmation.  News this morning reports that China will exempt soybeans and pork from additional tariffs and waive tariffs on U.S. ag goods they are encouraging their companies to buy shortly.
  • USDA lowered their soybean production estimate yesterday by 47mbu to 3.633bbu, primarily due to lower than average pod counts.
  • There were 177 soybean, 48 soymeal and 38 soyoil deliveries. 

Outlook: Soybeans broke out to the upside yesterday primarily on China news, follow-through today would enhance the bullish appearance of the weekly chart. 

Wheat

  • BAGE rated Argentina’s wheat crop 41% Good/Excellent, up 2 pts from last week.  Improved rains in the country’s mid-section contributed.
  • USDA made no changes to their wheat supply and demand balance sheet yesterday, as expected.  Any changes to be made should show up in their September 30th Small Grains Summary report.
  • There were 5 deliveries in KC wheat, 55 in Chicago and 1 in MPLS. 

Outlook: Wheat is trading at new highs for the move this morning, here in the U.S. as well as Paris futures.