Morning Highlights


Highlights

  • Reports have surfaced saying that China would be open to a partial trade deal with the U.S. as long as President Trump does not impose additional tariffs. This partial deal would likely include purchases of U.S. agricultural products.
  • Outside markets as of 7:00AM Central: November crude oil at $53.18 up $0.55; October gold at $1,499.30 up $2.10; DJIA at 26,164.04 down 313.98 points; the U.S. Dollar at 99.047 down 0.086.
  • The bid/ask this morning on lean hogs indicates a limit up open, likely due to the optimism surrounding the U.S.-China negotiations. Additionally, December hogs had an outside higher day yesterday, a bullish chart signal.
  • The next WASDE report will be released on Thursday, October 10th at 11:00AM Central.

 Corn

  • Corn traded in a narrow range overnight, pausing briefly after making strong gains yesterday.
  • December corn is creeping closer to its 200-day moving average of $4.01 ¾.
  • Chinese corn was up 1 ½, settling at 1,825 yuan per ton.
  • Spreads: Z/H 10 ¾ cent carry; H/K 5 cent carry; K/N 3 ¼ cent carry; Z/N 18 ¾ cent carry.

 Outlook:  Higher, drawing on trade optimism.

Oilseeds

  • Soybeans traded higher overnight, drawing on growing optimism surrounding the upcoming U.S.-China trade talks. November soybeans are trading at its highest level since mid-July.
  • As part of a potential partial trade deal between the U.S. and China, reports have said Chinese officials have offered to purchase an additional 10 million metric tonnes of U.S. soybeans. This has not been confirmed by an official source.
  • Chinese soybeans were up 7 ¾ and settled at 3,395 yuan per ton. Soy meal was up 2.10, settling at 2,942 and soyoil was up 29, settling at 5,978. Malaysian palm oil was up 21 ringgits and settled at 2,196.
  • There were 129 deliveries of October soymeal and 52 deliveries of October soyoil.
  • Spreads: X/F 14 ¾ cent carry; F/H 11 ¼ cent carry; H/K 8 ¾ cent carry; X/N 42 ¾ cent carry.

 Outlook: Higher, drawing on trade optimism.

Wheat

  • The wheat markets were mixed overnight, with Minneapolis mostly higher, Chicago mostly lower, and Kansas City mixed. There’s a general lack of fresh news to add strength to market ahead of Thursday’s WASDE.
  • Jordan has issued a new tender for 120,000 tonnes of milling wheat from optional origins with a deadline of October 22nd.
  • Japan purchased 16,000 tonnes of feed wheat in their weekly tender.
  • Spreads: Chicago Z/H 7 cent carry; Kansas City Z/H 13 ½ cent carry; Minneapolis Z/H 13 ¼ cent carry.

 Outlook: Kansas City and Minneapolis higher, Chicago lower.