Morning Highlights


Highlights

 

  • September grain futures cease trading at noon today.

  • Yemen’s Houthi rebels launched a drone attack on the world’s largest oil processing facility in Saudi Arabia. It knocked out half of the supplies from the largest exporter of oil in the world.  Prices are very volatile after the event and are currently up over $5 which is almost a 10% move.  

  • China’s industrial output was down 4.4% in August which is the weakest reading in over 17 years.

  • The next face to face meeting between Presidents Trump and Xi could occur mid-November at a summit in Chile.  Deputy level talks are planned for Washington DC this week.  

  • Outside markets as of 7:00am CT: Dollar up 184 at 98.441, Crude Oil up $5.51 at $60.35, Dow up 37 at 27219 and Gold up $10.70 at $1501.60.

     

Corn

  • The latest CFTC data showed that specs were sellers for the 8th straight week.  The overall position is a net short of 166,500 contracts.

  • RINS were trading higher last week in anticipation of a new biofuel reform deal from President Trump. 

  • The EU’s crop monitoring service slightly trimmed their corn yield estimate from 7.93 to 7.63 tons/hectare.

     

 

Outlook:  No big grain headlines to start the week so it will be important for Dec corn to stay above the 20 day  moving average at 366. Corn is unchanged to start.

 

Oilseeds

  • Farmers are allowed to plant soybeans in Mato Grosso Brazil as of today. However, the rainy season has started yet and temps have been extremely hot so many farmers will elect to wait for rain.  The best rain chances appear to be 10 days away. 

  • A Reuter’s poll has analysts looking for new record large soybean production in Brazil for the upcoming crop. Analysts are looking for a crop of 122.62 mmt which is an increase of 7.62 mmt from this year’s crop.

  • China’s hog herd is down nearly 40% from year ago levels. Pork prices are skyrocketing but the need for pig feed is down sharply as well.

  • NOPA crush is out today and analysts are looking for the largest August crush on record at 161.75 million bushels.

 

Outlook: Soybeans are the only commodity starting off weaker.  Will beans be able to continue last week’s rally?  Beans are 3 cents lower to start.

 

Wheat

  • Western Australia continues to remain hot and dry as the crop is already been trimmed because of the weather.

  • Algeria is tendering for 50,000 tonnes of optional origin milling wheat.

  • The spring wheat harvest should advance to around 85% complete in this afternoon’s crop progress report.

     

Outlook: Wheat is a penny higher although there is really nothing fresh for news in the wheat space.