Morning Highlights


Highlights

 

  • The crude oil market remains stable after Monday’s wild ride. Saudi Arabia said it will have the attacked oil facility back up to full capacity by the end of September.  

  • The Fed is expected to cut interest rates again today by 25 basis points. The cut is supposed to help offset slowing global growth due to the trade wars.  

  • Chinese trade officials are expected in Washington DC today to continue negotiations on the trade war.

  • Outside markets as of 7:20am CT: Dollar up 123 at 98.384, Crude Oil down $0.78 at $58.56, Dow up 34 at 27111 and Gold down $3.60 at $1503.30.

     

Corn

  • The latest ethanol number will be released by the EIA at 9:30 cst this morning.

  • The 10 and 20 day moving average should offer some support to December corn futures today and those levels are 365 and 368 respectively.    

  • Biofuel credits are up 30% from last week as refiners are active buyers. A potential change in biofuel policy is the driver for the buying interest.  

     

Outlook:  Corn softened in overnight trading as we head towards the donut break. 1 penny lower to start.   

 

Oilseeds

  • Exporters have reported soybean sales to China in each of the previous 3 days. The combined total is 720,000 mt.  This is slightly higher than the 600,000 mt traders mentioned as a goodwill gesture target late last week.    

  • Below normal rainfall is expected across Brazil for October perhaps causing further planting delays.

  • A second case of African Swine Fever was reported in South Korea and rumors of the disease spreading to Thailand.

 

Outlook: Soybeans are both sides of unchanged with very little fresh news in the market this morning. Any additional flash sales to China would be friendly as they have already exceed what traders thought they would buy as a goodwill gesture.

 

Wheat

  • Wheat traders in the Ukraine are asking the government to increase the cap on exports from 19 mmt to 20 mmt.

  • Egypt announced a new wheat tender yesterday. Results should be known later this afternoon.

  • No new deliveries against the September Chicago or Kansas wheat contracts.

     

Outlook: Wheat is trying to hold gains heading into the morning break and are only up ½ cent.