Morning Highlights with Exports


Highlights

  • The U.S. trade talks are still ongoing, as Steve Mnuchin said it is likely he will travel to Beijing soon to continue the negotiations.
  • Outside markets as of 7:00 AM: DJIA at 25,648 up 116 points, US Dollar Index at 97.606 up 0.037, and crude oil at $62.84 up 0.82.
  • Sonny Perdue announced yesterday that USDA is working on a second round of aid for U.S. farmers. The program will likely use last year’s aid as a model.

 Corn

  • Corn traded higher overnight as forecasts continue to show wet weather in the extended forecast. The overly wet weather continues to leave concerns about further delays in planting.
  • Weekly export sales were 553,300 tonnes, which was above the estimates of 200,000 to 500,000 metric tonnes of old crop. New crop sales were 80,800 metric tonnes , which was below the estimates of 100,000 to 400,000 metric tonnes.
  • Taiwan’s MFIG purchased 65,000 tonnes of corn from optional origins. The corn could be delivered from multiple origins, the U.S. included, but the origin must be declared by June 25th.
  • Strategie Grains cut their EU corn crop prediction from 63.1 million tonnes to 62.9 million tonnes.
  • Spreads: N/U 8 ½ cent carry; U/Z 10 cent carry; N/Z 18 ½ cent carry; Z/H 11 ¼ cent carry.

Outlook:  Higher on continued planting concerns.

 Oilseeds

  • Soybeans were higher in the overnight, as the weather has left the managed money covering their short positions.
  • Weekly soybean export sales were 370,900 metric tonnes, which was within the estimates of 100,000 to 400,000 metric tonnes of old crop. New crop sales were 303,400 metric tonnes, which was within the estimates of 200,000 to 600,000 metric tonnes. Soy meal sales were 196,100 metric tonnes, within the estimates of 100,000 to 250,000 metric tonnes of old crop. New crop sales were 69,300 metric tonnes, within the new crop estimates of 25,000 to 150,000. Soyoil sales were 10,800 metric tonnes of old crop, within the estimates of 5,000 to 25,000 metric tonnes.
  • Chinese soybeans 8 cents higher, settling at 3551 yuan per ton. Soymeal was up 6.00 settling a 2726 yuan per ton and soyoil was up 22 cents settling at 5448 yuan per ton.
  • Palm oil was up 51, settling at 2906 for the August contract.
  • Spreads: N/Q 6 ¾ cent carry; Q/X 18 cent carry; N/X 24 ¾ cent carry; X/F 12 ½ cent carry.

 Outlook: Higher on short covering.

 Wheat

  • Wheat traded higher in the overnight session as it followed corn higher. Additional strength in wheat is likely due to short covering in the Kansas City and Chicago markets.
  • Weekly export sales were 114,400 tonnes, which was within the estimates of 0 to 250,000 metric tonnes of old crop. New crop sales were 419,400 metric tonnes, which was above the estimates of 150,000 to 350,000 metric tonnes.
  • Strategie Grains lowered their EU soft wheat crop forecast from 144.8 million tonnes to 143.9 million tonnes.
  • Spreads: Chicago N/U 7 cent carry; Kansas City N/U 10 ¾ cent carry; Minneapolis N/U 9 ½ cent carry.

 Outlook: Higher on short covering and strength from corn.