Morning Highlights


Highlights

  • Strength in the US$ and plummeting currency in Brazil, keeps the US uncompetitive in the world market.
  • The US$ is up 305 at 99.87, the gold market is down 22 bucks at 1503, the CD$ down 0.00505 at 0.6986.
  • The energy market is mostly lower with crude oil down 2.09 at 24.81/barrel.
  • DJIA down 821 at 21237, S&P down 92 at 2529 and NASDAQ down 328 at 7334.
  • The USDA’s planting intentions and March 1 grain stocks reports are scheduled for release on March 31st at 11 AM CDT.
  • StatsCan plantings report is scheduled for April 4th. 

Corn

  • Corn prices continue to tumble on weakness in the energy market and expectations for a big increase in planted acres this year.The May contract dipped below support at $3.40. Next support level is seen at $3.30.
  • Most all contracts made new contract lows overnight.
  • South Korea’s feed groups bought 138k tonnes of optional origin corn.
  • Brazil’s central and southern region remains dry.
  • Weekly ethanol production report out this morning may not show this week’s declines in ethanol, but future reports are expected to reflect the lack of need for ethanol as gasoline demand wanes from the worldwide effects of the virus outbreak.
  • Late planted Safrinha corn is expected to benefit from rain events this week in Brazil.
  • Spreads: K/N 6 ½ carry, N/U 6 ½ carry, N/Z 16 carry, Z/N1 20 ½ carry. 

Outlook:  on the defensive from weakness in the energy markets 

Oilseeds

  • Soybean prices traded higher on strength in meal and dryness in SA, despite poor demand for US soybeans.
  • Argentina struggles with exporting soymeal, giving some hope that the US will acquire some of that business.
  • Argentina soils remain dry, resulting in crop losses and reductions in overall production for this year.
  • June palm oil closed down 11 ringgit at 2239 ringgit.
  • China’s soy complex; beans up 33 ¼ cents, meal down 60 cents at oil up 14 points.
  • Spreads: K/N 6 ¾ carry, N/Q 3 ¼ carry, N/X 9 ¼ carry, Q/X 6 ¼ carry, X/F 2 ½ carry, X/N1 3 carry. 

Outlook:  higher trade on meal strength and dryness in SA 

Wheat

  • Wheat prices are trading higher on the continued bounce from bargain buying. KC is taking the lead on strength in HRW basis from yesterday.
  • Russian wheat exports supported form weakness in the Russian currency.
  • South Korea bought 70k tonnes of optional origin feed wheat.
  • Southern Plains area expected to see more rain events this week.
  • Spreads: Mpls K/N 9 ¼ carry, Kansas City K/N 5 ¾ carry, Chicago K/N ¾ carry. 

  Outlook: higher trade on bargain buying and firming basis values