Morning Highlights with Exports


Highlights

  • In weather, there is a forecast calling for frost by October 11Th for MN, IA, WI. Rain is expected to move through much of the corn belt from Kansas City to Chicago over the next 3 days. Much of Brazil is expected to receive 0.5 to an inch of rain in the next 5 days. Rain is forecast for Southern Brazil and Argentina 6 to 10 days out.
  • Ten-year US T-bills dipped to a 3-week low as the markets wait for the US jobs report due out tomorrow morning.
  • China remains on holiday, marking 70 years of communist rule.
  • Outside markets as of 6:33 am CDT: The Dollar is down 50 at 99.969, crude oil is up $0.08 at $52.72, the Dow Jones is up 29.53 at 26,078.04 and is gold up $2.50 at $1,503.55. The Nikkei was off 436.87 points at 21,341.00, the FTSE is off 37.82 points at 7,084.72, the DAX is down 0.95 %, and the CAC is down 1.3 %.  

 

Corn

  • Corn traded quietly lower in the night session, down ½ cent. Resistance remains at $3.93 ½ while support is at $3.85. A lack of fresh news has traders technical selling.
  • Export sales for corn were 562.6 tmt , that’s on the low end of the range of estimates which was 400-800 tmt.
  • According to Imea Brazilian farmers have already sold 25% of their second crop corn for 2020. In Mato Grosso that number is 35% forward sold.
  • Funds were sellers of an estimated 5,000 contracts yesterday leaving them net short 133,900 contracts as October 2nd.   

     Outlook:  Corn steady to a penny lower on technical selling.   

     

    Oilseeds

  • Soybeans were trading lower overnight. Even though China bought soybeans from the US again, 464 tmt out of the Gulf of Mexico.
  • Export sales for soybeans were 2.08 mmt. That’s above the range which was 800 tmt-1.5 mmt. Soybean meal was 136.8 tmt, while soybean oil was 2.5 tmt.
  • Support for November soybeans lies at $8.82 with resistance at $9.32 ¾.
  • Palm oil was up 4 ringgits settling at 2137 ringgits.
  • There was no trade in soybeans in China as they are on holiday. 

 Outlook: Soybeans steady to 2 cents lower on profit taking.

 

Wheat

  • The wheat complex was lower overnight on technical selling. In the past week December 19 Mpls Spring wheat has lost 34 cents from its high.
  • Export sales for wheat were 328.5 tmt. That’s in the range of 200-600 tmt.
  • GASC bought one cargo of French wheat. Export shipments from French ports for the week ending October 2nd were down 23%.
  • Paris milling wheat was steady at 174.50 euros.
  • Syria tendered for 150 tmt of milling wheat from Russia.
  • ONICL, (Morocco’s grain buying agency) bought 576 tmt of soft wheat from the EU. They also bought 5.0 tmt of durum from the EU.

 Outlook: Chicago steady to 2 cents lower, KC wheat 2 to 4 cents lower, and Mpls 3 to 5 cents lower on technical selling