Morning Highlights


Highlights

  • Coronavirus cases in Brazil are rising rapidly, as the country reported it’s highest daily number of deaths and cases. Brazil currently has the third highest number of cases.
  • Non-essential travel bans from the U.S. to Canada and Mexico have been extended to June 22nd, 2020.
  • In observance of Memorial Day, grain and livestock markets will be closed on Monday, May 25th.
  • Outside markets as of 7:01 AM Central: July crude oil at $32.60 up $0.63; U.S. Dollar Index at 99.259 down 0.112; Gold at $1,753.90 up $8.30; Dow futures at 24,431 up 273 points.

Corn

  • Corn was a little lower overnight and seems content to remain in a range. Planting has progressed relatively well for many, and ethanol demand is still lower than pre-coronavirus levels. On May 1st July corn opened at $3.19 ½ and as of writing this July is at $3.20.
  • Reports indicate that China will sell 4 million tonnes of corn from state reserves on May 28th.
  • Weekly ethanol production will be released at 9:30 AM Central.
  • Chinese corn was down 4 cents and settled at 2,023 yuan per ton.

Outlook: Steady to lower.

Oilseeds

  • Soybeans were higher overnight, drawing on strength in soymeal. Soymeal traded higher overnight, after setting two life of contract lows to start the week.
  • Chinese soybeans were down 21 ¾ cents and settled at 4,251 yuan per ton; soymeal was up $2.80 and settled at 2,745 yuan per ton; soy oil was up 11 cents and settled at 5,438 yuan per ton.
  • Malaysian palm oil was down 23 ringgits and settled at 2,159 for the August contract.

Outlook: 5 to 8 cents higher.

Wheat

  • The wheat markets were higher across the board overnight, with Minneapolis leading the way. The July Minneapolis contract broke above it’s 20-day moving average of $5.11 ¼ and is at the high of the overnight session this morning at $5.12 ¾.
  • Kansas Wheat Commission’s wheat tour found yields on the first day of the wheat tour at 41.1 bpa in North Central Kansas and 51.7 bpa in North West Kansas.
  • Export data from Russia showed that the country exported 7.3 million tonnes of wheat in the first three months of 2020, up from 6.6 million in the same period last year.
  • Wet weather and cool temperatures are expected to continue in the Black Sea region, improving dryness in Ukraine and parts of Russia.
  • Japan received no offers in its tender for feed-wheat and barley.

Outlook: Higher across the board.