Morning Highlights


Highlights

  • Quarterly stocks are released at 11:00 CST today.
  • Dry weather in Argentina is beginning to worry the corn and wheat markets. The Buenos Aires Exchange cut their wheat projection from 20 mmt to 17 mmt, corn production was cut to 40 mmt.
  • The Quarterly Hog & Pig report had 77.7 million head up 3%, kept for breeding was 6.43 million head up 2% and market hog inventory was 71.2 million head, up 3%.
  • Outside markets as of 7:33am CT: the Dollar was up 314 at 99.423. Crude oil is off $0.87 at $55.04, Dow down 70.87 at 26,820.25 and gold off $1.59 at $1405.50. The Hang Seng was down 22 points at 26,015. The Nikkei was off 124.06 points at 21,755. Shang Hai Composite was off 26.97 points at 2,905.10. 

Corn

  • Corn traded in a relatively narrow range closing up ¾ cent. Resistance is at $3.77 while support is at $3.66.
  • According to Reuters the Quarterly stocks for corn are estimated at 2.428 billion.
  • Corn on the Dalian exchange was off 3 ½ cents trading at 1,819 yuan per tonne.
  • Funds are short an estimated net 168,900 contracts as of September 27th. 

Outlook:  Corn steady to a penny higher.    

Oilseeds

  • Soybeans trade higher overnight as rumors continue to swirl that China may be in the market for more US soybeans. Support for November soybeans lies at $8.82 with resistance at $9.00.
  • Palm oil was down 14 ringgits settling at 2135 ringgits.
  • Soybeans in China were down 8 ¾ cents overnight trading at 3,346 yuan per tonne. Soybean meal was up $2.30 per tonne settling at 2,871 yuan per tonne.
  • Ending stocks for soybeans are estimated at 982 million bushels.
  • South Korea bought 60 tmt of soybean meal from the US at $348.90 per ton for March delivery. 

Outlook: Soybeans 5 to 10 cents higher on rumors of China buying.

Wheat

  • Wheat is higher overnight on wet harvest conditions in Canada and the Northern US. Canada has over half their crop left to harvest, the US has less than 15% left to harvest.
  • Technically, Chicago December wheat has support at $4.82 ½ with resistance at $4.92 ½.
  • Paris milling wheat is nominally higher at 174.25 euros.
  • Wheat stocks are estimated at 2.318 billion bushels.
  • The price of Russian wheat for export rose to $188 per tonne last week.
  • South Korea passed on a tender for 60 tmt of feed wheat. 

Outlook: Chicago steady to a penny higher, KC wheat steady to a penny lower, ans Mpls 5 to 8 cents higher on weather.