Morning Highlights


Highlights

  • Federal Reserve Chairman Jerome Powell told “60 Minutes” in an interview that the U.S. GDP shrinkage could be in the “20’s or 30’s” but he does not see the U.S. entering into another Depression.
  • The weekly crop progress report will be released at 3:00 PM Central.
  • The monthly cattle on feed report will be released on Friday, May 22nd at 2:00 PM Central.
  • A spokesman for China’s New Hope group reported that pigs in China are still in short supply but will return to normal levels in 2020. The spokesman also reported that the New Hope group plans to build a pig farm capable on producing 165,000 head in the Philippines.
  • Outside markets as of 7:02 AM Central: June crude oil at $32.27 up $2.84; gold at $1,767.70 up $14.30 an ounce; US Dollar Index at 100.275 down 0.127; Brazilian Real at 5.7878 down 0.0681.

Corn

  • Corn was higher overnight in a narrow range. Strength is likely related to strong overnight energy markets, as well as wetness in the Midwest.
  • Export data released by SovEcon showed Russia’s May corn exports are likely to be 300,000 tonnes, down from April’s 469,000 tonnes.
  • Friday’s Commitment of Trader’s report showed speculators sellers of an estimated 31,848 contracts of corn, bringing them to a net short of 246,301 contracts.

Outlook: 1 to 3 cents higher.

Oilseeds

  • Soybeans were higher overnight, drawing on wet weather concerns. There were heavy rains throughout parts of the Midwest that could lead to some flooding. Additional support likely comes from soybean oil.
  • Soybean oil was up just over 50 points on the overnight session at the high. Strength comes from higher energy markets as many areas are reducing their stay at home orders.
  • Chinese soybeans were down 34 ½ and settled at 4,304 yuan per ton on the September contract. Malaysian palm oil was up 53 ringgits and settled at 2,142.
  • Friday’s Commitment of Trader’s report showed speculators buyers of an estimated 4,538 contracts of soybeans, bringing them to a net short of 2,961 contracts. They were sellers of an estimated 322 contracts of soyoil, bringing them to a net short of 26,590 contracts, and sellers of an estimated 2,628 contracts of soymeal, bringing them to a net short of 21,065 contracts.

Outlook: 6 to 8 cents higher.

Wheat

  • The wheat markets were mixed, with Chicago and Kansas City both trading lower and Minneapolis higher. Chicago wheat is now trading near the lows from mid-March. The RSI is at 20.6%, and generally anything under 30% would be considered oversold.
  • Export data released by SovEcon showed Russia’s May wheat exports are likely to be 1.5 million tonnes, down from April’s 3.065 million tonnes.
  • Reuter’s reported that Romania’s 2020 wheat crop will likely be smaller than last year’s 10 million tonne crop due to a drought, with estimates provided ranging from 5 to 7.4 million tonnes.
  • Friday’s Commitment of Trader’s report showed speculators sellers of an estimated 9,084 contracts of Chicago wheat, bringing them to a net short of 29,807 contracts and sellers of an estimated 3,296 contracts of Minneapolis wheat, bringing them to a net short of 23,893 contracts. Speculators bought an estimated 2,399 contracts of Kansas City wheat, bringing them to a net short of 14,468 contracts.

Outlook: Mixed to start, with Chicago and Kansas City lower and Minneapolis higher.