Morning Highlights with Exports


Highlights

  • Coronavirus continues to be the news story, with more than 7,000 confirmed cases in China. Some cities and provinces in China are reportedly planning to extend the Lunar New Year holiday even farther than the first extension, which was to February 3rd.
  • China’s state television reported that COFCO is asking all soybean crushers to resume production in order to increase supplies during the Coronavirus outbreak. Slaughterhouses received similar instructions.
  • Today is the last trading day for January feeder cattle futures and options.
  • CHS Hedging will be hosting a Compass class on March 25th in Inver Grove Heights, MN. For more information and to register, please click here.
  • Outside markets as of 7:00 AM Central: February crude oil at $52.05 down $1.28 per barrel; Dow futures at 28,498 down 212 points; US Dollar Index down 0.070 at 97.921; gold at $1,579.60 up $9.20 per troy ounce.

 Corn

  • Corn traded lower overnight and made fresh lows before export sales were released. The market remains skittish in light of the coronavirus.
  • Brazil’s JBS CEO reported this morning that they are paying $1 a bushel more for corn than in the U.S. due to stronger than expected export demand and strong domestic demand for ethanol production.
  • Weekly export sales were 1,234,700 tonnes versus estimates ranging from 600,000 to 1,200,000 tonnes.
  • Spreads: H/K 5 ¼ cent carry; K/N 5 cent carry; N/U 1 ¾ cent inverse; U/Z 3 ¼ cent carry.

 Outlook:  3-4 cents lower.

 Oilseeds

  • Soybeans were lower overnight and are on the session lows currently. This is the eighth day in a row of lower prices.
  • The Brazilian real continues to weaken, trading at 4.2494. This is the weakest it’s been against the Dollar since early December.
  • Weekly soybean sales were 469,700 tonnes versus estimates ranging from 400,000 to 1,000,000 tonnes. Soymeal sales were 438,800 tonnes versus estimates ranging from 200,000 to 500,000 tonnes and soy oil sales were 29,400 tonnes versus estimates ranging from 8,000 to 40,000 tonnes.
  • European traders reported that Algeria’s state agency ONAB likely purchased an unspecified amount of soymeal. The lowest price offered was $376.25 a tonne.
  • Malaysian palm oil was down 71 ringgits and settled at 2,652 ringgits.
  • Spreads: H/K 14 cent carry; K/N 13 ¾ cent carry; N/Q 5 cent carry; Q/X 4 ¾ cent carry.

 Outlook: 6-8 cents lower.

 Wheat

  • Wheat markets were lower across the board, on their third consecutive down day.
  • The lowest offer received by Egypt’s GASC in their tender for wheat was $231.50 per tonne for 60,000 tonnes of French wheat. A sale hasn’t been reported yet.
  • Weekly export sales were 646,300 tonnes versus estimates ranging from 300,000 to 700,000 tonnes.
  • Spreads: Chicago H/K ½ cent carry; Kansas City H/K 7 ½ cent carry; Minneapolis H/K 9 ¾ cent carry.

  Outlook: Weaker across the board, with winter wheats seeing sharper losses than spring wheat.