Morning Highlights


Highlights

  • Coronavirus continues to spread. The WHO declared a Global Health Emergency. Reports this morning from China have deaths at 213 and confirmed cases of the virus tops 10,000. 2/3 of China’s economy remains shut down due to the Coronavirus.
  • Britain will leave the EU today at 11:01PM GMT.
  • Outside markets as of 6:30 AM: March crude oil was up $0.43 at $52.59 per barrel, January gold up $12.50 at $1,583.60, US Dollar Index is off 0.095 at 97.772, and Dow futures down 427 at 28,506.
  • 300 million chickens are on the edge of death in Hubei province due to a lack of feed.
  • The coronavirus is expected to cost between $120 and $160 billion before it’s contained.
  • The biannual cattle inventory report will be released on Friday, January 31st at 2:00 PM Central. 

Corn

  • Corn traded higher overnight settling ¼ cent higher.
  • South Korea’s Nonghyup is tendering for 45 to 69 tmt of corn today for shipment by May 10th.
  • Spreads: H/K 5 ¾ cent carry; K/N 5 ½ cent carry; N/U 1 cent inverse; U/Z 3 ½ cent carry. 

Outlook:  Weaker on fears of Coronavirus. 

Oilseeds

  • Soybeans were nominally lower off ½ cent, soybean meal is up $0.20 per ton and soybean oil is off $0.33 per lb. The coronavirus remains the market focus. Soybean futures are down 8% in the month of January.
  • South American weather looks favorable, which is adding pressure to U.S. soybean prices.
  • There continues to be no trade from China.
  • Malaysian palm oil was 58 ringgits lower settling at 2,604 ringgits. Palm oil dropped 15% in January, 257 ringgits this past week.
  • Spreads: H/K 13 ¾ cent carry; K/N 14 cent carry; N/Q 5 cent carry; Q/X 5 ¼ cent carry. 

Outlook: Weaker on virus fears, and good South American weather. 

Wheat

  • The wheat markets were mixed overnight, with Chicago and Kansas City were lower while Minneapolis settled a penny higher overnight.
  • Egypt bought 180 tmt of French wheat, for the year, so far, they’ve bought 5.62 mmt, 3% more than last year.
  • Spreads: Chicago H/K 1 cent inverse; Kansas City H/K 7 ¾ cent carry; Minneapolis H/K 9 ¾ cent carry.  

Outlook: Weaker on virus fears.