Morning Wire


Highlights

  • DuPont and Dow have won U. S. antitrust approval to merge on condition that the companies sell certain crop protection products and other assets. The approval was met with distain by the head of the National Farmers Union who said farmers will now face higher costs.      

  • Greece has cleared the hurdles that will allow European creditors to give the country the next batch of money due from its bailout. The $9.5 billion in bailout money will allow Greece to meet a big repayment in July.  

  • Believe it or not, 7 % of American adults that were polled think that chocolate milk comes from brown cows. Holy cow, you have to wonder what school, if any, those folks went to, or what planet they are from!! Sure hope the poll wasn’t taken in southern Missouri!     

  • CHS hedging will be offering Hedging Classes at the IGH office on June 28 & 29. Check the website for information and registration. www.chshedging.com

  • U. S. dollar index is down 75 @ 97.360, WTI July Crude up 36 @ 44.82, Dow index up 18 @ 21.381.   

            

Corn

  • Funds were net buyers of about 4,000 corn contracts yesterday despite rather large wheat/corn spreading.

  • China sold 1.25 million tons of 2013 state owned reserve corn at auction overnight. The total sold was about 58 % of the 2.144 million tons that were put up for auction.         

  • In an effort to curb the H7N9 bird flu virus, China has decided to begin the process of vaccinating all species of poultry in July including broiler chickens, ducks, geese and egg-laying hens.        

  • More than 20 cargo ships along Argentina’s Parana River have had top drop anchor and are unable to move due to a wage strike by workers in that region. Workers are pressing for wage increases in line with the inflation rate that stands at about 20 %. No word on just how quickly this work stoppage might be solved.             

     

    Outlook: Weather forecasts hold the key for price movement. Weekend looks to bring rains to the corn belt as do the extended early morning forecasts for the next 10 days.    

     

Oilseeds

  • NOPA crush was much bigger than expected @ 149.246 million bushels, up about 6 million from the average estimate and up about 10 million from last month. Soyoil stocks were 1.749 billion pounds, up 24 million pounds from last month.                  

  • BAGE reported that the Argentine soybean harvest is 94.5 % complete, up about 4 % from last week. Only about 1.0 million hectares are left to harvest in La Pampa, BA and northern areas. While yields are marginally dropping, BAGE was unchanged on its estimate of production @ 57.5 MMT.       

  • Pakistan has reportedly purchased about 60,000 tons of soybeans from the U. S. and Brazil over the last few days. Shipment on this purchase is slated for Nov. 20 to Dec. 20, 2017.

  • Palm oil traded higher overnight for the third straight day on the strength of rival oils and a weaker ringgit. September palm oil closed up 35 @ 2,484.  

     

Outlook: Weather forecasts will continue to hold the key for price movement in the coming days. Expect a choppy trade as we end the week. Early morning extended forecasts look wet for the Midwest for the next 10 days or so.           

 

 

Wheat

  • FranceAgrimer reported that French soft wheat ratings fell another 1 % to 74 % G/E in the week ended June 12. Durum ratings fell 2 % in the G/E category to 62 %.                 

  • EU sort wheat exports for the 16/17 marketing year now stand @ 22.6 million tons, down 24 % from the 29.9 million tons exported at the same time last year.                      

  • A Reuters poll expects the combined wheat crops of Russia, Ukraine and Kazakhstan to decline by about 7 ½ % in 2017 to 105.8 million tons. Combined exports of the three countries are expected to decline by about 3% to 50.4 million tons. Russia on the other hand is expected to have record wheat exports in 17/18 of 28.8 million tons due to large stocks and competitive prices        

  • 142 HRS receipts were canceled in Duluth. The beat goes on.

  • Harvest activity may be slowed in Kansas today and tomorrow as very heavy thunderstorms were seen late yesterday and last night across a good portion of the state. Some large hail was reported but do not have any fisrt hand reports from folks in those areas this early in the morning. As of late yesterday afternoon, the theme of surprisingly good yields and disappointing proteins continued.      

                     

Outlook: Dry weather in U. S. spring wheat producing areas, along with hot dry conditions in western Europe continue to stoke wheat prices. Some rains are forecast for northern U. S. spring wheat areas but amounts are not seen as enough to stem the tide of the dryness that has gripped that area. Talk of lower spring wheat production, lower HRW harvested areas, and therefore smaller 17/18 wheat carryout only adds fuel to this fire.