Morning Highlights


Highlights

  • Officials from the top seven economies in the world, the G7, held a conference call today in order to discuss their response to the coronavirus. The officials decided that they would make no decision on fiscal or monetary support yet, as we are still at the beginning of the outbreak.
  • The Chinese government will step up its efforts in supporting transportation and logistics firms, they also stated that China grain output must stay stable during the coronavirus outbreak.
  • China’s agricultural ministry reported that a new case of ASF was detected in a wild boar in Hubei province.
  • Dow and S&P futures both briefly turned lower this morning after the G7 call resulted in no decision regarding economic stimulus.
  • As of 7:00 AM: Crude oil up 0.84 at 47.59, Dow futures up 6 ticks at 26,474, and the U.S$ index up 192 at 97.552.                          

 Corn

  • The corn market is trading higher overnight as the markets find strength from stronger equities and a weaker dollar.
  • Weather forecasts for Brazil remain dry, and although they are only in the early stages of the Safrinha crop, if this dry pattern continues Brazil could start to see some crop issues.
  • Long term forecasts for the U.S are showing some risk of increased rains in parts of the U.S, causing slight concern that planting delays could occur.
  • South Korea’s MFG purchased around 131,000 tonnes of corn in a tender to be sourced from optional origins.  
  • South Korea’s KFA is tendering to purchase 68,000 tonnes of corn from optional origins.
  • In his weekly update, Dr. Cordonnier left his 19/20 Brazilian and Argentine corn estimates unchanged at 100.0 million tonnes and 49.0 million tonnes, respectively.
  • Spreads: H/K ¼ cent carry; K/N 2 ¾ cent carry; N/Z 1 ¾ cent carry .

Outlook: Trading higher today as traders are optimistic that the government and central banks will provide some sort of economic stimulus.

 Oilseeds

  • The soybean market trading slightly higher overnight finding support from expectations that economic stimulus will be provided by the governments and central banks.
  • Chinese soymeal futures rose by 1% on Tuesday, seeing support from a delay in Brazilian soybean cargos due to rains causing some crushers to suspend operations.
  • Malaysian palm oil futures were up over 2% during today session due to optimism of increased demand from China and India, after the resignation of prime minister Mahathir Mohamad.
  • IMEA reported that Mato Grosso harvest has reached 84,1%, vs 87.7% last year at this time.
  • In his weekly update, Dr. Cordonnier left his 19/20 Brazilian and Argentine soybean estimates unchanged at 125.0 million tonnes and 54.0 million tonnes, respectively.
  • Deliveries: Soybean Meal 922, Soybean Oil 343, Soybeans 1,000
  • Spreads: H/K 10 ¾ carry, H/N 21 ¼ carry, N/X 7 carry

Outlook: Trading steady to higher today as traders wait for more news regarding economic support from the government.  

 Wheat

  • Wheat markets are mixed this morning with Chicago trading slightly lower, KC trading mostly unchanged and Mpls up about 7 cents.
  • According to APK-Inform, about 11% of Ukrainian winter grains are in weak condition and could have to be reseeded this spring.
  • Australia’s ABARES is predicting a 40.4% increase in wheat production this year due to recent rains, lifting 20/21 production to 21.3 million tonnes.
  • Two companies are believed to be offering in Jordan’s tender for 120,000 tonnes of wheat, no purchase has been made.
  • A Thailand buyer purchased just around 60,000 tonnes of feed wheat in a tender for up to 240,000 tonnes, the wheat will be sourced from optional origins.
  • Deliveries: Mpls 12, and KC 9
  • Spreads: Chicago K/N 1 cent carry; Kansas City K/N 6 ½ cent carry; Minneapolis K/N 9 cent carry.

Outlook: Trading higher today as markets find support from optimism regarding economic stimulus.