Morning Highlights


Highlights

 

  • The crude oil market has calmed down substantially after yesterday’s wild ride triggered by the bombing of Saudi Arabia’s biggest processing facility.  

  • China will auction of pork from its reserves this week to help fight skyrocketing pork prices.

  • No frost risks are seen on the extended forecasts leaving farmers hopeful that the late planted crops will make it to full maturity.

  • Outside markets as of 7:00am CT: Dollar down 26 at 98.584, Crude Oil down $0.86 at $62.03, Dow down 143 at 27077 and Gold down $5.20 at $1497.90.

     

Corn

  • The latest crop ratings have corn good/excellent conditions at 55% which is steady with last week.  Last year the crop was at 67% and the 5 year average is 69%.

  • Corn harvest is underway, and the crop is 4% complete in the first tally of the season. The 5 year average is 7%.    

  • A government ag official in China doesn’t think that China will be able to meet their 2020 ethanol targets. He cites lack of available corn stocks and slow development of ethanol production capacity.

     

Outlook:  Corn conditions were unchanged, but apparently the market wanted a decline so better conditions means a 4 cent loss overnight.  

 

Oilseeds

  • Swine fever has been discovered in South Korea now.   

  • The latest crop ratings has the soybean good/excellent conditions at 54% which is down 1% from last week.  Last year the crop was at 68% and the 5 year average is 67%.

  • China’s customs department says it will allow imports of soybean meal from Argentina.

  • NOPA crush was 168.085 million bushels. This sets a new record for the month of August and was well above the average guess set by analysts.  

 

Outlook: Soybeans are getting hit hard despite a drop in conditions as expected.  The crude oil rally yesterday appears over so beans getting hurt.  Down 8 in the overnight.

 

Wheat

  • Australia lowered its forecast for wheat export by 7.7% due to drought.

  • US spring wheat harvest advanced to 76% complete but still lags the 5 year average of 93%.

  • Winter wheat planting is underway and is 8% complete in the first reading of the season. The 5 year average is 12%.

     

Outlook: Wheat is soft falling victim to row crop weakness with overnight setback of 1-5 cents across the classes.