Morning Highlights


Highlights

  • The threat of frost remains 15 days out on current forecasts for most of the Corn-Belt. In South America, near normal rains for most of Brazil with dryness in Southern Brazil and Argentina being discussed.
  • The US and China are scheduled to resume talks next week in Washington.
  • China remains on holiday, celebrating 70 years of communist rule.
  • Outside markets as of 6:33 am CDT: The Dollar was up 73 at 99.201, crude oil is up $0.20 at $53.83, the Dow Jones is down 343.79 at 26,573.04 and is gold up $3.00 at $1,485.00. The Nikkei was of 106.63 points at 21,778.00, the FTSE is off 151.42 points at 7,208.90, the DAX is down 0.95 %, and the CAC is down 1.3 %.

Corn

  • Corn traded lower in the night session, down 3 ¾ cents. Resistance remains at $3.93 ½ while support is at $3.82 ¾. Profit taking was noted.
  • One private analyst raised their estimate for the 2019 corn crop to 169.3 bushels per acre, up from 168.4 bushels per acre putting the corn crop at 13.887 billion bushels.
  • The USDA said 454.6 million bushels of corn were used for ethanol in August, that’s down from last year’s 483.4 million bushels.
  • Funds were buyers of an estimated 30,000 contracts yesterday leaving them net short 128,900 contracts as October 1st.

 Outlook:  Corn 2 to 4 cents lower on profit taking.   

Oilseeds

  • Soybeans are trading lower after reaching a new high for the second time in two days. Yesterday’s high at $9.20, was the highest price seen since July 22. Profit taking, and a stronger Dollar helped push beans lower overnight.
  • Support for November soybeans lies at $8.82 with resistance at $9.32 ¾.
  • Palm oil was off 26 ringgits settling at 2141 ringgits.
  • There was no trade in soybeans in China as they are on holiday.
  • One private analyst lowered their estimate for the 2019 soybean crop to 48.1 bushels per acre, down from 48.3 bushels per acre putting the soybean crop at 3.661 billion bushels.
  • The USDA said 178 million bushels of soybeans were crushed in August.

 Outlook: Soybeans 2 to 4 cents lower on profit taking and a stronger Dollar.

Wheat

  • Wheat was mostly lower overnight on profit taking. Chicago December wheat is supported at $4.76 ¼ with resistance at $5.02.
  • GASC is tendering for wheat for shipment in November. Egypt said it has enough wheat in reserve for 4.7 months.
  • Paris milling wheat was 0.50 euro higher at 175.25 euros.
  • South Korea bought 77.5 tmt of milling wheat for delivery in February and March. Bunge is thought to be the seller.
  • Japan got no offers for feed wheat and barley from its tender for February delivery.

 Outlook: Chicago 3 to 5 cents lower, KC wheat 4 to 6 cents lower, and Mpls steady to 2 cents higher on weather.