Morning Highlights


Highlights

  • President Trump reported that the U.S.-China trade talks went very well in Washington yesterday. The talks will continue today.
  • An Iranian oil tanker was struck by a missile in the Red Sea, which helped give crude prices a boost.
  • The Ukrainian Central Bank Chief said that their 2019 grain harvest may reach a record setting 80 million tonnes but gave no additional information.
  • The CFTC Commitment of Traders report will be released this afternoon at 2:30 Central.
  • Outside markets as of 7:00 AM Central: November crude oil at $54.31 up $0.81; October gold at $1,483 down $11.80; DJIA at 26,497.67 up 150.66; U.S. Dollar at 98.339 down 0.362 points.
  • Last trading day for October soymeal, soyoil, and lean hog futures is on Monday, October 14th. This is also the last trading day for October lean hog options.

 Corn

  • The corn market bounced higher overnight after incurring sharp losses yesterday following the release of the WASDE report. Strength comes from renewed trade optimism, as well as poor weather in the Northern Plains.
  • The December corn contract is hovering just above it’s 20-day and 50-day moving averages of $3.80 ¼ and $3.78 ½ respectively.
  • Spreads: Z/H 10 ¾ cent carry; H/K 5 ¾ cent carry; K/N 4 ½ cent carry; Z/N 21 ¼ cent carry.

 Outlook:  Higher, drawing on trade optimism and weather.

Oilseeds

  • Soybeans were higher overnight, drawing on strength from yesterday’s report as well as optimism regarding the U.S. China trade talks. Poor weather in the Northern Plains also helped to add strength to the market.
  • November 20 soybeans were at their highest level since late March in the overnight session, setting a high of $9.76.
  • There were 180 deliveries of October soymeal and 20 deliveries of October soyoil.
  • Chinese soybeans were up 6 ½ and settled at 3,418 yuan per ton. Soymeal was up 2.90 and settled at 2,974 and soyoil was up 37 and settled at 6,010. Malaysian Palm oil was down 16 ringgits and settled at 2,185.
  • Spreads: X/F 14 cent carry; F/H 11 ¾ cent carry; H/K 9 ¼ cent carry; X/N 44 ½ cent carry.

 Outlook: Higher, drawing on trade optimism and weather.

Wheat

  • The wheat markets were higher overnight, drawing on strength in corn and beans.
  • Tunisia is tendering for 50,000 tonnes of milling wheat from optional origins. They are looking for two 25,000 tonnes cargoes to ship in mid-November. The lowest offer was $220.49 per tonnes C&F. A purchase has not been reported yet.
  • China sold 13,202 tonnes of imported wheat at auction from their state reserves for an average of 2,000 yuan per tonne.
  • Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 13 ¼ cent carry; Minneapolis Z/H 14 cent carry.

 Outlook: Higher, drawing on trade optimism, weather, and strength in corn.