Morning Highlights


Highlights

  • 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.

  • With the ethanol industry throttled back, they are producing way less CO2 that is badly needed by the meatpacking industry to refrigerate products.  Ethanol produces 40% of the CO2 used by the meatpackers.

  • Locust outbreaks are decimating crops in Kenya, Somalia, and Ethiopia.  
  • Outside markets as of 7:15 AM: May crude oil was up $.32 at $23.96 per barrel, April gold up $4 at $1,669, US Dollar Index is up 0.180 at 100.08, and Dow futures down 26 at 22,654.

Corn

  • Corn is trading higher overnight by 2 cents.

  • Estimates for tomorrow’s WASDE report show that corn ending stocks have a pretty wide range between 1.792 and 2.150 billion bushels. World ending stocks have a huge range of 8 million tons between 293 and 301 million tonnes.  

  • Today’s ethanol numbers are going to be closely watched as many production facilities are off-line. 

  • July corn futures finally broke its 7 day losing streak yesterday. The streak dropped corn prices by 17 cents.

  • Spreads: K/N 5.25 cent carry; N/U 4.75 cent carry; U/Z 8.50 cent carry.

     

Outlook:  Today’s ethanol numbers are going to be a big input for corn prices.  

 

Oilseeds

  • Soybeans are 4 cents higher in overnight trade, with soybean meal up $2.70 per ton and soybean oil is down $0.13 per lb..

  • Estimates for the upcoming WASDE report are out.  Soybean ending stocks have a range between 385 and 475 million bushels. World ending stocks have a huge range of almost 8 million tons between 97 and 104.85 million tonnes.

  • China has released 500,000 tonnes of soybeans from its reserves to COFCO for crushing. Supply delays from Brazil have caused a temporary shortage of available inventory.

  • Malaysian palm oil was 42 ringgits higher, settling at 2,411 ringgits. Palm operations continue to close in Malaysia’s biggest oil producing state over corona containment.

  •  Spreads: K/N 7 cent carry; N/Q 2.75 cent carry; Q/X 3 cent carry.

 

Outlook: Beans were choppy overnight and will end the overnight session a little higher. Current world supplies feel a little tight right now so beans are finding a touch of support.

 

Wheat

  • The wheat markets are much softer in the overnight session, with Chicago and Kansas City down 6 cents, while Minneapolis is 3 cents lower.

  • Kazakhstan is planning to increase wheat export quotas in the coming months. They had limited exports last month to ensure steady domestic supply. 

  • Ukraine has been an aggressive exporter of wheat. All grain exports are up 21% year on year.

  • Spreads: Chicago K/N 1.50 cent inverse; Kansas City K/N 6.50 cent carry; Minneapolis K/N 10.50 cent carry.

 

Outlook: The wheat market continues to chop and today is the up day.