Morning Highlights


Highlights

  • U.S.-China trade talks will resume this week in Washington D.C. Various reports have said that Vice Premier Liu He plans to bring an offer that doesn’t include commitments on reforming Chinese industrial policy or government subsidies.
  • U.S. weather forecasts are suggesting that an early blizzard could hit parts of the Northern plains towards the end of the week. The blizzard has the potential to bring 10-20 inches of snow, as well as winds above 45 mph.
  • Outside markets as of 7:00 AM Central: November crude oil at $53.49 up $0.68, October gold at $1,497.50 down $8.70, U.S. dollar at 98.857 up 0.049, and the DJIA at 26,573.72 up 372.68 points.
  • Crop Progress will be released this afternoon at 3:00 PM Central.
  • The next WASDE report will be released on October 10th at 11:00 AM Central.

 Corn

  • Corn traded in a narrow range overnight on a quiet start to the week.
  • December corn remains above it’s 50-day moving average of $3.80 ½.
  • Friday’s CFTC COT report showed speculators net short 145,100 contracts of corn as of last Tuesday.

 Outlook:  1-2 higher

Oilseeds

  • Soybeans traded both sides, starting the evening higher but then drifting modestly lower.
  • The USDA reported the sale of 198,000 tonnes of soybeans for delivery to China during the 2019-2020 marketing year and the sale of 240,000 tonnes of soybeans for delivery to unknown destinations during the 2019-2020 marketing year.
  • There were 281 deliveries of October soymeal and 25 deliveries of October soyoil.
  • December palm oil was up 11, settling at 2,160. There was no trade on the Dalian exchange, as China is still on holiday.
  • Friday’s CFTC COT report showed speculators net short 26,400 contracts of soybeans, net long 8,400 contracts of soy oil, and net short 38,300 contracts of soymeal.

 Outlook:  Unchanged to a penny lower

Wheat

  • The wheat markets are mixed, drawing on the quiet tone of corn and soybeans.
  • December Chicago wheat is above its 20-day moving average of $4.86 ½; December spring wheat is just below its 100-day moving average of $5.41; and December Kansas City wheat is below its 20-day moving average of $4.06.
  • Bangladesh received an offer of $255.46 a tonne in response to their international tender of 50,000 tonnes. A purchase has not been confirmed.
  • Russia’s IKAR raised their forecast for the country’s wheat crop from 75.0 million tonnes to 75.4 million tonnes.
  • Friday’s CFTC COT report showed speculators net short 42,300 contracts of Chicago wheat and net short 21,100 contracts of Kansas City wheat.

 Outlook: Unchanged to 1 higher