Morning Highlights


Highlights

  • Chinese officials visiting Washington DC to work out trade issues have asked to visit some American farms next week.  

  • The latest cattle on feed report comes out at 2:00 cst today. Placements are estimated to be down 6.3% from year ago levels.  

  • Outside markets as of 7:30am CT: Dollar up 172 at 98.444, Crude Oil up $0.56 at $58.69, Dow down 52 at 27095 and Gold up $1.70 at $1501.20.

     

Corn

  • USDA’s Foreign Ag Service has increased China’s corn production by 20 mmt from the July estimate. Production is still estimated to be down from this year.

  • Informa is projecting 95 million acres of corn will be planted next year.

  • Export sales were outstanding at 1,464,600 mt.  This is the biggest weekly sales since the end of February.   

     

Outlook:  Corn is slightly weaker in overnight trading with not much fresh news this morning. A penny lower to start.   

 

Oilseeds

  • The CHS Fairmont soybean plant renovation to expand crush and production capacity is moving forward. Construction is now underway and should be complete fall of 2021. The Fairmont plant produces crude soybean oil, soybean meal and soybean hulls 

  • Palm oil is going to end the week on a softer tone. The huge gains seen on Tuesday in response to the oil field bombing, were eroded the balance of the week.

  • China continues to buy soybeans from Brazil despite US supplies currently cheaper. 

  • Export sales were very strong at 1,728,100 mt.  The recent Chinese goodwill purchases bumped up the total.  This was the largest weekly sales total since the end of March.

 

Outlook: Soybeans are just a little softer heading into the break as it seems like

China has taken a break from new US sales.

 

Wheat

  • Spring wheat rallied on crop concerns in Argentina and Australia.  

  • US harvest results for spring wheat continue to show extremely poor quality. Falling numbers are very low and will have to be diverted into the feed channel.

  • Russia has improved its wheat quality which will open up additional markets like Saudi Arabia.

  • Export sales estimates very disappointing at only 286,600 tons.

 

Outlook: Mpls wheat continues to be the price leader. Cash markets are very strong and should keep the futures supported.  Mpls up 4 cents, with the other classes unchanged.