Morning Highlights


Highlights

  • Smithfield reported that they will be closing their pork facility in Monmouth, IL after a “small percentage” of employees tested positive for coronavirus.
  • JBS reported that they will be closing a beef plant in Green Bay, WI however they also reported that the facilities in Greeley, CO and Souderton, PA have reopened.
  • The WHO reported on Friday that “There is no evidence yet that people who have had Covid-19 will not get a second infection.”
  • The weekly crop progress report will be released this afternoon at 3:00 PM Central.
  • First notice day for May grains is on Thursday, April 30th.
  • Outside markets as of 7:00 AM Central: June crude oil at $13.54 down $3.40; U.S. Dollar Index at 99.984 down 0.396 points; Brazilian Real at 5.5907 up 0.0572; Gold at $1,725.30 up $1.80.

Corn

  • Corn was lower overnight and is currently trading near the lows of the session. Weakness in corn is likely related to the continued lack of ethanol demand due to coronavirus. Additionally, weather has been favorable, and the crop progress report this afternoon will likely show that planting is moving along well.
  • The European Union reported that they will apply a 5.27 euro per tonne import duty on corn as of Monday.
  • Friday’s CFTC Commitment of Traders report showed speculators were sellers of 20,115 contracts of corn, bringing them to a net short of 205,792 contracts.

Outlook: 4 to 5 cents lower.

Oilseeds

  • Soybeans were mixed overnight but are currently near the low end of the range. Weaker soymeal and soyoil are likely putting pressure on the soybeans, as well as lack of demand for biofuels.
  • China’s soybean imports from Brazil were down 24.8% from the prior year. China imported 2.1 million tonnes of Brazilian soybeans in March, down from 2.79 million tonnes in March of last year. The decrease was due to cargo delays from rain.
  • July Malaysian palm oil futures were down 57 ringgits and settled at 2,018 ringgits overnight.
  • Chinese soybeans were down 5 and settled at 4,626 yuan per ton. Chinese soymeal was up 2.50 and settled at 2,765 yuan per ton, and Chinese soyoil was down 70 at 5,370 yuan per ton.
  • Friday’s CFTC Commitment of Traders report showed speculators sellers of 20,442 contracts of soybeans, bringing them to a net short of 18,305 contracts. In addition, speculators also sold 9,526 contracts of soybean oil, bringing them to a net short of 28,831 contracts and they sold 2,285 contracts of soymeal, bringing them to a net short of 16,499 contracts.

Outlook: Unchanged to 2 cents lower.

Wheat

  • The wheat markets were lower overnight, drawing on weakness in other markets. The market doesn't seem concerned that Russia's quota for grain exports has been met as countries over the weekend secured customs documents for shipment in May and June to ensure they are in the quota. Exports will still continue as Russia has not actually exported 7 million tonnes of grains for Q2
  • Saudi Arabia’s state grain buyer reported that they purchased 655,000 tonnes of wheat for summer shipment in an international tender.
  • Friday’s CFTC Commitment of Traders report showed speculators sellers of 2,578 contracts of Chicago wheat, bringing them to a net short of 8,395 contracts. They also sold 4,904 contracts of Minneapolis wheat, bring them to a net short of 17,399 contracts. The report showed speculators as buyers of 2,889 contracts of Kansas City wheat, bringing them to a net short of 11,477 contracts.

Outlook: Lower across all three classes.