3/17/2020 7:18:11 AM
- The US$ is sharply higher, up 1.224 at 99.29, the gold market is down 16-17 bucks at 1470 and the CD$ is down 0.0062 at 0.70865.
- Grain prices garnered support from demand for food and issues around food security.
- Thoughts are that the effects of the CoronaVirus could stick around through the summer months.
- The energy markets are mixed with crude oil up slightly at 28.77/barrel.
- Brazil meat packers are considering closing some of their slaughterhouses because of supply issues form the CoronaVirus.
- Corn prices stabilized overnight on a slight bounce in the energy sector.
- South Korea’s Feed groups purchased 132k tonnes of optional origin corn for July/Aug at $199.98 & $190.23 per tonne respectively.
- Texas corn planting was last reported at 29% compared to 28% last week and 15% on average.
- Brazil’s corn crop is expected to be reduced to 98.0 mmt, down from 100.0 mmt from hot/dry weather conditions in southern Brazil. Argentina’s corn crop is expected to be unchanged at 49.0 mmt.
- Spreads: K/N 3 ½ carry, N/U 2 ¼ carry, N/Z 8 carry, Z/N1 17 carry.
Outlook: steady to slightly higher on bargain buying
- Soybean prices saw renewed life, from a bout of bargain buying, after several sessions of significant weakness.
- Gains were limited from lack of demand and concerns about the impact the CoronaVirus has had and will continue to have on the economy.
- Palm oil futures closed 30 higher at 2250 ringgit.
- China’s soybean prices were up 13 ½ cents, mela down 80 cents and oil down 14 points.
- Cordonnier lowers his Brazilian soybean production to 123.0 mmt, down 2.0 mmt because of hot/dry conditions in and around Rio Grande do Sul.Argentina’s production is estimated at 51.0 mmt, because of hot/dry weather over the past several weeks.
Outlook: higher trade on a bounce
- Wheat prices stabilized somewhat with Mpls and KC up a hair and Chicago unchanged.
- Japan is in for their routine food tender (90k tonnes optional origin for April/May). Breakdown: US white 19k, HRW 26k and NSW 13k....Canada spring wheat 32k.
- Winter wheat conditions were mixed with KS at 46% G/E versus 47%, TX at 36% G/E versus 26% last week, OK at 67% G/E versus 58% last week and CO at 46% G/E versus 59% at the end of February.
- Ukraine says they do not plan to reduce their wheat exports because of the CoronaVirus.
- Spreads: Mpls K/N 10 carry, Kansas City K/N 7 carry, K/K 55 carry (4 ½ cents a month), Chicago K/N 1 ¼ carry.
Outlook: steady to slightly higher