Morning Highlights with Exports


Highlights

  • President Trump said China “broke the deal” therefore at midnight tonight the President will raise tariffs on $200 billion in goods from China from 10% to 25%.

  • The USDA will release their S & D report tomorrow morning at 11:00 am CDT.

  • According to the United Nations, meat production globally is expected to fall in 2019 for the first time in 20 years due to the African Swine Fever in China. China is ordering all 10,000 slaughter houses to test for African Swine Fever starting July 1st.

  • Rains are expected to exit the Eastern Corn-Belt today leaving most producers with at least 2 to 3 days before field work can resume. Forecasts are calling for wetter conditions in the western Corn-Belt 10 to 14 days out and dryer weather East of the Mississippi.

  • Asian markets are lower overnight, the Hang Seng was up 0.33% at 28,114.0, ShangHai Composite was down 1.5% at 2,8586.46. The Nikkei was off 0.93%, the FTSE was off 0.25% trading at 7,252.46.   

  • Outside markets as of 7:00 am CT: Dollar up .04% at 97.624, crude oil is down $0.18 at $61.94, gold is off 0.3% at $1,284.15.

     

Corn

  • Corn traded lower overnight, on technical weakness and improving forecasts next week. 

  • Corn in China was up 3 ¼ cents, trading at 1930 yuan per tonne. According to China’s National Grain and Oil Information Center China will produce 255.6 mmt of corn, while demand will reach 275 mmt. Their smallest crop since 2014.

  • Export sales for corn were 293.5 tmt that’s below the expected range of 550 tmt to 1 mmt.

  • Brazils corn crop is expected to rise from 4.9 to 5.59 per hectare according to Conab.    

  • There were 252 deliveries with the next available date being May 7th. That brings total deliveries to 4,038 contracts.

 Outlook:  3 to 5 cents lower.  

 

Oilseeds

  • Soybeans were lower overnight on increasing trade tensions with China. Soybean meal was off $1.10 a ton at $291.70 per ton for July.

  • Conab raised their projection for 18/19 soybean crop for Brazil from 113.823 mmt to 114.313 mmt.

  • Malaysian palm oil futures were off 33 ringgits to 2,005 overnight.

  • Soybeans in China surged higher, up 25 ½ cents trading at 3,448 yuan per tonne. Soybean meal was up $11.20 a tonne at 2,605 yuan per tonne.

  • Export sales were 146.5 tmt, that’s below the expected range of 350 tmt to 1 mmt. For soybean meal sales were 196.5 tmt above the range at 0 to 50 tmt.

  • There were 733 soybean deliveries, the next available date is May 8th. There were 68 soybean meal deliveries, the next available date is May 7th and 420 soybean oil deliveries.

 Outlook: 4 to 8 cents lower.  

 

Wheat

  • The wheat complex traded lower overnight on follow through weakness testing support at $4.33 in Chicago July wheat.

  • Wheat exports were 502.9 tmt inside the expected range of 175 to 600 tmt.   

  • The Philippines bought 110 tmt of feed wheat at an expected price of $198.75 per tonne, the origin is thought to be Black Sea.

  • The Russian Ag Ministry said there will be no tax on wheat exports.

  • There were 10 Chicago wheat deliveries with the next available date May 2nd. There were no winter wheat or spring wheat deliveries.

    Outlook: 3 to 5 cents lower.