Morning Highlights


Highlights

  • There are now 1,367 people that have passed away due to the coronavirus with 59,804 cases confirmed. The new cases jumped dramatically as a new method of using CT scans to diagnose someone is much quicker than using the old method of nucleic acid tests.
  • Equity markets across the globe are lower overnight as the number of people officially diagnosed with the coronavirus in China dramatically jumped overnight.
  • As of 7:15 am CT: US Dow futures are down 177, WTI crude oil is down $0.08 per barrel and USD is down .077 to 98.845.

Corn

  • Corn is weaker again overnight after seeing a bounce yesterday.
  • Export sales were 968.8 tmt vs. expectations of 700-1,200 tmt.
  • Broiler egg set data was 5% above last year with nearly 240 million eggs set in incubators.
  • Harvest activity in North Dakota has stopped with cold temperatures and strong winds making life difficult.
  • Spreads are wider this morning but have narrowed this week: H/K 4 ¼ carry, H/N 7 ½ carry, H/Z 10 ¾ carry.

 Outlook:  Back and forth market, bouncing off its most recent lows.

 Oilseeds

  • Soybeans are weaker overnight but still above yesterday’s low.
  • Export sales were 644.8 tmt for soybeans vs. expectations of 600-1,000 tmt. Soymeal export sales were 234.2 tmt vs. 125-400 tmt expected. Soyoil export sales were 39.1 tmt vs. expectations of 7-30 tmt.
  • The effective date of the Phase 1 deal is February 15th, and the market is hoping the US sees some business from China next week.
  • Dalian soybeans were 12 cents higher; soymeal was $2.60/ton higher and corn was unchanged. Malaysian palm oil futures were down 84 ringgits to 2,625 ringgits, impacted by coronavirus and lower vegetable oil imports in India.
  • Spreads have come in this week but are mostly wider this morning: H/K 10 ¼ carry, H/N 22 ½ carry, H/X 29 ½ carry, N/X 7 carry.

 Outlook: Weaker markets across the board, waiting for business from China.

 Wheat

  • Wheat is weaker across the board. Matif wheat is very quiet, trading unchanged.
  • Export sales came in at 643.1 tmt vs. expectations of 300-650 tmt. New crop sales came in at 44 tmt vs. expectations of 0-50 tmt.
  • Strategie Grains has said wheat prices in the EU may fall this spring, even with lower domestic production, as Russia is expected to harvest a large crop and global supplies are comfortable.
  • Like soybeans, the wheat market is hoping for some Chinese business next week as the Phase 1 deal goes into effect this weekend on the 15th.
  • Jordan has issued a tender to buy 120,000 MT of hard milling wheat from optional origins. South Korea’s MFG purchased 67,000 MT of feed wheat from Canada.
  • Spreads are mixed this morning: Mpls H/K 9 ¼ carry, Kansas City H/K 6 ½ carry, Chicago H/K ¼ cent inverse.

 Outlook: Weaker market, pressured by weakness across commodities and global business slowing.