Morning Wire


Highlights                

  • CHS Hedging will have one person one the eastern leg and one person on the western leg of the Pro Farmer Crop Tour this week. You will be able to follow and get tour updates from both CHS participants on twitter @hedgeit.    

  • POET, the nation’s largest ethanol producer announced on Tuesday afternoon that they will idle production indefinitely at their Biorefining-Cloverdale, Indiana plant. Other POET biorefining plants will be running at reduced capacity and other biorefinery positions will be consolidated. Marquis Energy also announced it will cut production rates at its 100 million gallon-per-year plant in Necedah, Wisconsin. The company plan to continue run its 400 million gallons-per-year plant in Hennepin, Illinois at full capacity.                   

  • Iowa Democratic Representative Cindy Axne will ask today for a federal investigation into the EPA’s decision to waive refineries from biofuel-blending requirements under the RFS program.

  • The minutes from the FOMC July 30-31 meeting where the Fed reduced rates for the first time in 10 years will be released today.                                                                                                                    

  • A/0 7:20 A. M. Crude Oil down 16 @ 56.18, Dow Futures up 191 @ 26,122, U. S. Dollar Index down 3 ticks @ 98.060.   

            

Corn

  • The Pro Farmer Crop Tour continued to find variability and expected lateness in maturity as crops were scouted on Tuesday in Indiana and Nebraska. Nebraska corn yield was estimated @ 172.55 bushels per care vs 179.17 last year vs the 3-year tour average of 167.73 bushels per acre. Corn yield in Indiana was estimated @ 161.46 bushels per acre vs 182.33 last year vs the 3-year tour average of 175.66 bushels per acre.                                       

  • Russia reported new found cases of African swine fever at two private farms in the Amur region near its border with China.                             

  • Corn shipments from Brazil and Argentina continue at a brisk pace. Brazilian corn exports for the first 19 days of August totaled 4.6 million tons while Argentina shipped 1.7 million tons in the first 16 days off this month.                                 

Outlook: A small prices recovery overnight but nothing to get to excited about. More rain is falling across Nebraska, western Iowa, northwest Missouri and Kansas this morning. Extended forecasts look wetter and cooler. Crop needs GDD weather to try to catch up on maturity. Looks like choppy trade continues with eyes toward crop tour results and weather.                                 

 

Oilseeds                      

  • The Pro Farmer Tour on Tuesday estimated soybean pod counts in Nebraska in a 3-by-3 foot square @ 1,210.83 pods vs 1,299.08 pods last year vs the 3-year tour average of 1,217.72 pods. Indiana soybean pod counts in a 3-by 3 foot area @ 923.94 pods vs 1,311.87 pods last year vs the 3-year tour average of 1,219.69 pods.                                 

  • Palm oil futures rose  more than 1 % overnight on expectations of slower growth in production. The benchmark November contract closed up 31 ringgits to 2,208.                              

  • Technically, SX19 support lies @ 8.65 with resistance @ 878 ¾ then 886 ½.                                                          

Outlook: Choppy trade will most likely continue with trade focusing on Pro Farmer Tour results and weather. Prices have gained a nickel so far in overnight trade.                                 

 

 Wheat

  • Tunisia tendered to purchase 92,000 tons of milling wheat for shipment between Sept.15-and Oct. 25 depending on the origin of the wheat.                

  • Japan’s Ag Ministry received no offers for feed wheat or barley in a SBS auction that closed today. The SBS auction had sought 120,000 tons of feed wheat and 200,000 tons of feed barley.                                                    

  • Bulgaria raised its estimate for 2019 wheat production to 6.1-6.6 million tons vs earlier estimates of 5.8-5.9 million tons.

  • KC deliverable stocks this week totaled 103.42 million bushels vs 102.23 million last week. Chicago wheat deliverable stocks this week are 46.963 million bushels vs 46.104 mi9llion last week. Deliverable stocks in Minneapolis this week were 2.529 million vs 1.775 million last week. Stocks in Duluth totaled 15.360 million vs 15.050 million last week.

  • KC spot premiums posted ordinary thru 11.2 % proteins down 8-12 cents yesterday.                                                                                                                                            

Outlook: More red ink on prices overnight. No news is bad news, charts not encouraging,  just feels like the old saying “the beatings will continue until the morale improves”.