Morning Highlights


Highlights

  • Chinese foreign ministry spokeswoman Chunying told reporters today that the U.S should not use tariffs as a weapon against China, stating that tariffs generally hurt all of the involved parties.
  • Tyson Foods has announced that it will reopen its largest U.S pork plant this week but stated that the plant would work at reduced capacity for now.
  • While meat shortages seem to be just over the horizon for the U.S., export data is showing that U.S pork sales to China are skyrocketing.
  • As of 7:00 AM: Crude oil down 0.43 at 24.13, Dow futures up 135 ticks at 23,896, and the U.S$ index up 268 ticks at 99.977.                          

 Corn

  • The corn market is trading slightly higher for the front months while the deferred months are trading lower.
  • South Korea’s NOFI purchased about 138,000 tonnes of corn via tender for a price of $171.00 a tonne C&F.
  • The EU has raised their maize import duty from 5.27 euros per tonne to 10.40 euros per tonne due to the weakness in U.S. corn prices.
  • Brazil continues to see dryness concerns in their safrinha growing areas as rains forecasted for earlier this week were weaker than expected.
  • Spreads: K/N 3 ¾ cent carry; N/Z 16 ¾ cent carry; Z/N 26 carry .

Outlook: Trading steady today as there is a lack of fresh fundamental news to give the market direction.

 Oilseeds

  • The soybean market is trading slightly higher this morning as there is still some hope in the market that China will continue their U.S soybean purchases.
  • According to Anec, the Brazilian National Association of Grain Exporters, Brazilian soy exports could reach 11.9 million tonnes in May
  • South Korea’s NOFI has purchased about 60,000 tonnes of soymeal that is expected to be sourced from South America.
  • Malaysian palm oil futures fell to an almost 10 month low during today’s session due to an increase in production paired with weaker exports. The benchmark contract settled down 28 ringgit at 1,946 ringgit per tonne.
  • Spreads: K/N ½ cent carry, N/X 6 ½ cent carry

Outlook: Trading steady to higher as the market waits to see if additional Chinese purchases will occur.   

 Wheat

  • Wheat markets are all trading lower this morning as we continue to see dry conditions ease in the EU and Black Sea region.
  • French soft wheat shipments for outside the EU reached a four year high of 1.56 million tonnes in April, according to Refinitiv data.
  • The Oklahoma wheat crop tour estimates that Oklahoma’s 2020 winter wheat harvest will come in at 96.524 million bushels, with an average yield of 33.16 bpa.
  • Argentine wheat production is forecasted to hit a record high in the 20/21 season of 21 million tonnes.
  • Spreads: Chicago K/N 4 ½ cent inverse; Kansas City K/N 1 cent carry; Minneapolis K/N 12 cent carry.

Outlook: Mostly weaker today as weather concerns across the globe continue to ease.