Morning Highlights


Highlights

  • Oil traded lower overnight, dropping as low as $10.07 per barrel for June WTI crude.
  • Outside markets as of 7:20 AM Central: June crude oil at 11.42 down $1.36; US Dollar Index at 99.556 down 0.485; Gold at $1,716.60 up $4.70; DJIA futures at 24,379 up 379.
  • First notice day is Thursday, April 30th for May grains.

Corn

  • Corn traded higher overnight and is starting to look oversold. July corn has an RSI of 28.6%, and generally anything under 30% is considered oversold.
  • South Korea’s KFA reportedly purchased 68,000 tonnes of corn for $169.06 a tonne c&f. The corn will arrive at the end of October. South Korea’s FLC also reportedly purchased 65,000 tonnes of corn for 169.90 a tonne c&f from optional origins.
  • The weekly crop progress report showed corn planted at 27% complete versus 7% last week and the 5-year average of 20%. Corn emerged was reported at 3% versus the 5-year average of 4%.
  • A respected analyst has lowered his estimate for the Brazilian corn crop by 1 million tons to 97 million tons. The same analyst left his Argentine estimate unchanged at 49.0 million tons.

Outlook: 1 to 2 cents higher.

Oilseeds

  • Soybeans were mostly higher overnight, bouncing after Monday’s weak tone across the board.
  • The weekly crop progress report showed soybeans planted at 8% versus 2% last week and the 5-year average of 8%.
  • A respected analyst has left his estimates for the 2019/2020 soybean crop unchanged in both Brazil and Argentina, at 121 million tons and 50 million tons respectively.
  • Chinese soybeans were down ¾ and settled at 4,628 yuan per ton, soymeal was down 4.40 and settled and at 2,750 yuan per ton and soyoil was down 12 and settled at 5,346 yuan per ton.

Outlook: 2 to 4 cents higher.

Wheat

  • The wheat markets were higher overnight following yesterday’s losses. The crop conditions reported yesterday were lower than anticipated.
  • Western Europe has had the driest spring since 1979 according to the European Union’s crop monitoring service. This has impacted planting and emergence, and reportedly could negate an expected production increase from Britain and France.
  • Egypt reported that they have purchased 578,000 tonnes of local wheat since April 15th. They are reportedly looking to purchase approximately 3.6 million tonnes from local sources.
  • The weekly crop progress report showed winter wheat headed at 21% versus 14% last week and the 5-year average of 25%. Winter wheat condition was 54% good to excellent versus last weeks 57% and last years 64%. Spring wheat planted was 14% versus last weeks 7% and the 5-year average of 29%. Spring wheat emerged was 4% versus the 5-year average of 7%.

Outlook: Higher across the board.