Morning Highlights


Highlights

 

  • The Fed cut interest rates again by 25 basis points.  President Trump criticized the move as he would have preferred a larger cut.  

  • The South China Post is reporting that the US and China are close to agreeing on an interim trade deal as soon as next month.

  • Outside markets as of 7:30am CT: Dollar down 303 at 98.258, Crude Oil up $1.33 at $59.44, Dow up 36 at 27147 and Gold down $5.00 at $1504.10.

     

Corn

  • The latest ethanol numbers had production off 20,000 bpd.  The current production level of 1,003,000 bpd is the lowest production level since April. Ethanol margins dropped this week and are now 2 cents negative.

  • President Trump is meeting with senators from refining states to discuss the RFS as the President is under pressure from corn belt senators to help the farm community.

  • A Reuters survey predicts the next corn crop in Brazil will hit 102.3 mmt which is up from this year’s crop of 99.98 mmt.  This would be the first 100+ mmt crop there.

  • Another ethanol plant will go idle, the latest in Sioux City Iowa.    

  • Export sales estimates are between 900,000 and 1,300,000.  

     

Outlook:  Corn softened in overnight trading. +/- 1 to start.   

 

Oilseeds

  • South Korea reported their second case of African Swine Fever. If the deadly disease spreads throughout SE Asia, feed demand could be sharply cut.

  • Export sales estimates are between 700,000 and 1,100,000.

 

Outlook: Soybeans are just a little softer heading into the break as the market will be watching for a new flash sale announcement.

 

Wheat

  • Widespread frost in Western Australia could make a small crop even smaller.

  • The results of the latest Egyptian tender showed them buying 180,000 tonnes of Russian wheat.  No US wheat was offered.

  • Dry weather is slowing down the planting of winter grains across most of Ukraine.

  • Export sales estimates are between 300,000 and 600,000.

Outlook: Wheat is mixed on very little fresh news.