5/11/2020 8:35:57 AM
and oilseed markets are seeing slight changes ahead of tomorrow’s WASDE
report, which will be the USDA’s first look at the 2020/21 supply and
week we should also see details on the call between the U.S. and Chinese,
where they will discuss details and progress on the Phase 1 trade deal.
Trump said in a tweet over the weekend that the country will start buying
$3 billion in surplus dairy products, meat, and fresh produce from the
U.S. farmer. The program is part of
the $2.3 trillion aid package passed by Congress in March.
across several eastern corn belt states hit hard freeze levels over the
weekend, raising concern of what kind of damage was done to jointing wheat
and any crops that have emerged.
of 7:15 AM: Crude oil up 0.26 at 25.06, Dow futures down 248 ticks at 24,038,
and the U.S $ index down 371 ticks at 100.140.
Slightly higher trade and narrow ranges on the overnights should spill over for
quiet markets during the day trade.
report projects 2020/21 carryout to be at 440 million bushels vs. 480
million bushels for 2019/20.
call this week between U.S. trade rep Lighthizer and Chinse Vice-Premier
Liu He will give the market further insight into how the Phase 1 deal
looks. With a weak Brazil Real and plentiful
supply, it makes traders question how many soybeans they will truly buy
from the U.S. until they must.
oilseed association group ABIOVE raised their estimate for Brazil’s export
program to 77 MMT vs. 75.3 MMT previously and 76.5 MMT from the USDA.
were quiet last week and bought only 4,538 contracts, putting their net positions
short 2,961 contracts.
K/N 1’4 cent carry, N/X 5’0 cent carry, X/N 8’6 cent inverse.
Mixed to higher trade this morning as we don’t expect much for price action
today ahead of tomorrow’s report.
wheat production this year is expected to be at 1.847 billion bushels vs.
1.920 billion bushels last year.
welcomed relief should hit most of Kansas and Oklahoma as forecasts show
rains this week.
will watch how spring wheat planting progressed over this last week. Progress is expected to be at 55%
complete vs. 29% last week and 70% on average.
northern 1/3 of South Dakota sees their final spring wheat planting date
this Thursday, while North Dakota has from May 31 to June 5.
Chicago N/U 3’0 cent carry; Kansas City N/U 7’2 cent carry; Minneapolis N/U
10 ½ cent carry.
Mixed trade to start the morning, expect non-eventful trade through the day as
traders get ready for tomorrow’s report.