Morning Highlights with Exports
8/8/2019 7:45:51 AM
- CHS Hedging will be at Farmfest in Morgan, MN today. Stop by booth 316 to visit, and to get a market update at 10:00 AM.
- As of 7:00 AM September crude oil was $52.10 up $1.01, the dollar index was 97.637 up 0.093, and gold was $1,497.80 down $9.50.
- The August WASDE is Monday August 12th at 11:00 AM Central.
- Last trading day for August lean hog futures and options is on Wednesday, August 14th.
- Corn traded higher overnight, going back above the December 100-day moving average of $4.15 ¼. Corn has found support from weather forecasts turning drier. Additional support comes from position squaring ahead of Monday’s report.
- Weekly export sales were 42,500 tonnes, which was below the estimates between 100,000 and 300,000 tonnes for the 18/19 marketing year. New crop sales were 197,000 tonnes, which was below the estimates between and 200,000 to 600,000 tonnes.
- In a Chinese state reserve auction 615,310 tonnes of corn was sold for an average price of 1,684 yuan per tonne.
- Spreads: U/Z 7 ¼ cent carry; Z/H 9 ½ cent carry; U/H 16 ¾ cent carry; Z/N 17 ½ cent carry.
Outlook: Higher, look to see if the 100-day moving average is supportive.
- Soybeans traded higher overnight, as traders begin to position themselves ahead of the report on Monday. Additional support comes from dry weather.
- Weekly export sales of soybeans were 101,600 tonnes, which was within the estimates of 0 and 300,000 tonnes. New crop sales were 318,200 tonnes, within the estimates of 100,000 to 400,000 tonnes. Soymeal sales were 92,200 tonnes, within estimates of 50,000 and 200,000 tonnes. New crop sales were 18,600 tonnes, which was within estimates of 25,000 to 125,000 tonnes. Soyoil sales were 31,700 tonnes, above estimates of between 5,000 and 20,000. New crop sales were 8,900 tonnes, which was within estimates between 0 to 10,000 tonnes.
- Chinese soybeans were down 1 ½ cents and settled at 3,387 yuan per tonne. Soymeal was down $0.10 per ton settling at 2,873 and soyoil was up 66 and settled at 5,926.
- There were 1,103 deliveries of August beans and 402 deliveries of August meal.
- Spreads: U/X 12 ½ cent carry; X/F 13 ½ cent carry;
Outlook: Higher on pre-report positioning.
- The wheat markets traded mostly higher overnight, as traders position themselves ahead of Monday’s report. Additional support comes from news of U.S. wheat business as Japan made a purchase of U.S. wheat.
- Weekly export sales were 487,700 tonnes, which was within estimates ranging from 250,000 and 500,000 tonnes.
- Russian customs data showed that wheat exports declined from 19.3 million tonnes in the first half of 2018 to 10.6 million tonnes in the first half of 2019.
- Japan bought 114,783 tonnes of food quality wheat from the U.S., Canada, and Australia. U.S. origin wheat included 11,140 tonnes of western white, 15,845 tonnes of hard red winter, and 27,640 tonnes of dark northern spring with a minimum protein of 14.0 percent.
- Spreads: Chicago U/Z 2 ¼ cent carry; Kansas City U/Z 17 ½ cent carry; Minneapolis U/Z 10 ½ cent carry.
Outlook: Higher on report positioning.