Morning Highlights


Highlights

  • New research from scientists at the Korean Centers for Disease Control and Prevention has reportedly found that patients who test positive for coronavirus after recovering are unable to transmit the virus and could have antibodies that prevent them from getting sick again.
  • Chinese and Australian relations continue to worsen amidst coronavirus. Last week China banned imports of Australian beef from four processors, and now this week China is imposing an 80% tariff on Australian barley.
  • Last trading day for May feeder cattle futures and options is on Thursday, May 21st. Last trading day for June grain and oilseed options is Friday, May 22nd.
  • Outside markets as of 7:08 AM: June crude oil at $32.39 up $0.57; U.S. Dollar Index at 99.340 down 0.235; Brazilian Real at 5.6892 down 0.0305; Dow futures at 24,454 down 53; gold at $1,738.40 up $4.00.

Corn

  • Corn traded higher overnight but remained in a one cent range. The July contract is hovering above it’s 20-day moving average at $3.18 ¾. Crop progress was in line with expectations, and there’s little in the way of fresh news.
  • Yesterday’s crop progress report had corn planted at 80% versus 67% last week and the 5-year average of 71%. Corn emerged was at 43% versus 24% last week and the 5-year average of 40%.
  • Dr. Cordonnier has left both his Brazilian and Argentine corn production estimates unchanged at 96.0 million tonnes and 49.0 million tonnes respectively.

Outlook: Steady to slightly higher.

Oilseeds

  • Soybeans were mixed overnight but are mostly higher this morning. The market seems to be waiting to see if more Chinese buying will show up on flash sales.
  • Yesterday’s crop progress report had soybeans planted at 53% versus 38% last week and the 5-year average of 38%. Soybeans emerged was at 18% versus 7% last week and the 5-year average of 12%.
  • Dr. Cordonnier has left both his Brazilian and Argentine soybean production estimates unchanged at 121.0 million tonnes and 50.0 million tonnes respectively.
  • India has reportedly resumed purchasing Malaysian palm oil after a four month pause, making a purchase of approximately 200,000 tonnes.
  • Government data released on Monday showed that Brazilian soybean exports in the first half of May were 8.8 million tonnes.
  • Chinese soybeans were down 10 ¾ and settled at 4,291 yuan per ton. Soymeal was up 1.30 and settled at 2,735 yuan per ton and soyoil was up 3 and settled at 5,430 yuan per ton.
  • Malaysian palm oil was up 40 ringgits and settled at 2,182 ringgits for the August contract.

Outlook: Steady to slightly higher.

Wheat

  • The wheat markets were mixed overnight, with Chicago and Minneapolis higher and Kansas City mostly lower. Kansas City continued yesterday’s losses overnight, setting another lower low. The RSI is at 18.5%, and anything under 30% is generally considered oversold.
  • Japan’s Ministry of Agriculture issued a tender for 110,573 tonnes of food quality wheat from the U.S., Canada, and Australia to be loaded during July.
  • Jordan is thought to have received offers from 3 companies in their tender for 120,000 tonnes of wheat. A purchase hasn’t been reported yet.
  • Yesterday’s crop progress report had winter wheat headed at 56% versus 44% last week and the 5-year average of 62%. Winter wheat conditions were reported at 52% good to excellent versus 53% last week and 66% last year. Spring wheat planted was reported at 60% versus 42% last week and the 5-year average of 80%. Spring wheat emerged was at 30% versus 16% last week and the 5-year average of 46%.

Outlook: Mixed to higher across all three types.