Morning Highlights


Highlights

  • The oil market remains fragile as a scheduled meeting between Saudi Arabia and Russia that was scheduled for today gets postponed until Thursday. Oil is already down over $1, although it was down $3 at one point. 

  • There will be no grain trading on Friday, April 10th as the markets are closed for the Good Friday/Easter holiday.

  • The next WASDE report is scheduled for this coming Thursday, April 9th.

  • The first crop conditions report of the season is scheduled for this afternoon.  

  • The US is the country with the most reported corona cases by far at 337,000.  Next closest is Spain at 132,000.

  • Outside markets as of 7:30 AM: May crude oil was down $1.05 at $28.24 per barrel, April gold up $21.30 at $1,655, US Dollar Index is up 0.188 at 100.764, and Dow futures down 361 at 21,052.

Corn

  • Corn traded higher overnight settling ¼ cent higher.

  • July corn futures are lower for the 7th consecutive day.

  • Fear over the corona virus has sent some traders to the sidelines with corn open interest down 15% from year ago levels. 

  • The US biofuel industry is looking for a bailout as the corona virus has collapsed demand for ethanol.

  • Spreads: K/N 6 cent carry; N/U 5.25 cent carry; U/Z 8.25 cent carry.

     

Outlook:  Weaker on big acres and lack of any bullish inputs.

 

Oilseeds

  • Soybeans are 4 cents lower in overnight trade, with soybean meal down $2.40 per ton and soybean oil is off just $0.01 per lb..

  • The soybean harvest in Brazil has reached 86% complete.  This is above the average of 80%.   

  • The bottlenecks at some of the Argentine ports are starting to clear. Freight is exempt from the shutdown.

  • Malaysian palm oil was 13 ringgits higher settling at 2,309 ringgits.

  •  Spreads: K/N 5.75 cent carry; N/Q 2.5 cent carry; Q/X flat.

 

Outlook: Weaker on virus fears, and a slight improvement in South American logistics.

 

Wheat

  • The wheat markets were are soaring in the overnight session, with Chicago and Kansas City up 10 cents, while Minneapolis is 7 cents higher.  

  • Egypt is changing its tender terms after cancelling an import tender last week.

  • Saudi Arabia has asked the private sector to import 355,000 tonnes of wheat. This is to help increase strategic reserves.

  • Spreads: Chicago K/N 5.5 cent inverse; Kansas City K/N 6.5 cent carry; Minneapolis K/N 11.5 cent carry.

 Outlook: Wheat is seeing a nice bounce after a sharp selloff last week.  The wheat market has been extremely choppy and that pattern continues today.