Morning Wire


Highlights                    

  • September Options expire today, Friday August 23rd at the close. FND for September futures is Friday August 30th. Check your orders, positions and plan accordingly!                   

  • The Pro Farmer Crop Tour final soybean and corn crop estimates along with state-by-state yield estimates will be released @ 1:30 p.m. CDT today.

  • Japan’s Marubeni Corp. will reportedly shutter its grain trading desk in Singapore to merge with a top Indonesian soybean and soymeal importer.

  • Twenty French mayors have banned the use of glyphosate in their municipalities which is in direct conflict with national French laws that allow the use of the chemical.

  • China announced additional tariffs on $75 billion of U. S. goods shortly after 7:00 A. M. this morning.                                                                                                                      

  • A/0 7:30 A. M. Crude Oil @ down 1.78 @ 53.38 Dow Futures down 172 @ 26,052, U. S. Dollar Index up 1763 ticks @ 98.240.   

            

Corn

  • On its final day in fields, Pro Farmer Crop Tour scouts pegged Iowa corn yield @ 182.83 bushels per acre vs 188.20 bushels per acre last year vs the 3-year tour average of 185.39 bushels per acre. In Minnesota, corn yield was pegged @ 170.37 bushels per acre vs 178.67 bushels per acre in 2018 vs the 3-year tour average of 184.18 bushels per acre.                                            

  • Taiwan’s MFIG bought 65,000 tons of corn from Brazil @ 116 ½ cents over CH20 c&f. Trading house AMAGGI is the reported seller with shipment slated between Nov. 3 AND Nov. 22. Interestingly, origins for the tender included the U. S., Brazil, Argentina and South Africa. Only Brazilian corn was offered.                                          

  • China sold 481,787 tons of corn at auction overnight from state-owned reserves. The sale represented about 27 % of the total tonnage offered for auction.

  • FranceAgrimer, in its weekly crop report, estimated that 62 % of the French corn crop is in G/E condition. This week’s rating was up 2 % from last week and is 1 % above the rating at the same time last year.  

  • Fall armyworms have moved into the Chinese province of Hebei. This is the 24th province in China where armyworms have been detected. The Chinese government estimates 2.356 million acres have been affected by the armyworms. The pest feed on leaves and stems of corn and sorghum.                                      

Outlook: Market in the red overnight as weather is non-threating, with more rain and cool temperatures forecast for next week. CZ19 has broken through the 370 area and hovers just a couple of cents above 366 ¼, which is the low this week. Next support for CZ19 is contract low of 363 ¾. Chinese announcement this morning of additional tariffs on $75 billion worth of U. S. goods added additional pressure to prices in late overnight trade.                                          

 

Oilseeds                      

  • The Pro Farmer Crop Tour estimated Iowa soybean pods in a 3-by-3-foot square @ 1,106.91pods vs 1,208.99 pods in 2018 vs the 3-year tour average of 1,175.40 pods. In Minnesota, pod counts in a 3-by-3-foot square were estimated @ 965.31 pods vs 1,090.47 pods last year vs the 3-year tour average of 1,072.68 pods.                                            

  • China has purchased only about half of the U. S. soybeans that they agreed to buy in Oval Office agreements earlier this year. So far, only 9-10 million tons of the 20 million tons of purchases agreed upon have been shipped and accepted to the Chinese.

  • Egypt’s GASC bot 12,000 tons of sunflower oil from ADM. The tender included 30,000 tons of soybean oil but none was purchased.

  • Malaysian palm oil futures continued to climb overnight for the fourth straight session on on expectations of lower production. The benchmark November contract closed 6 ringgits higher 2 2,262. Palm oil prices have gained over 3 % this week.                                                                                          

Outlook: Red numbers for beans overnight with a fairly-sharp break after 7:00 am this morning on announcement of additional Chinese tariffs of $75 billion worth of U. S. goods. Outside markets lower, option expiration at the close today with traders evening up ahead of FND next Friday.                                  

 

 Wheat

  • South Korean flour millers have purchased 30,000 tons of various classes of U. S. wheat this week. Soft white wheat (10.5 % protein) was purchased @ $212.96/ton FOB, hard red wheat (11.5 % protein) @ $201.56, and spring wheat (14.0 % protein) @ $217.93. Shipment is Nov. 20-Dec. 20.

  • BAGE estimated that 92% of the Argentine wheat crop was in average to excellent condition. The exchange did note though that the G/E category fell 3% to 46 % due to the lack of rain and low temps in the central and southern parts of the belt.                  

  • A Philippine imported bought 60,000 tons of feed wheat from Black Sea origins. Reportedly the purchase price was $222.00/ton c&f for Nov. 1-30 shipment. AGROCORP International was the seller.                                                         

  • Germany’s farmers association DBV says wheat production in that country will total about 23.1 million tons this year compared to the 19.5 million tons harvested last year due to drought conditions. This year’s harvest will still fall under the 5-year average German wheat production of 25.3 million tons.

  • Jordan has issued a new tender to purchase 120,000 tons of optional-origin milling wheat. The tender deadline is August 28th.                                                                                                                                                     

Outlook: Choppy trade continues with quiet trade and news lacking. Wheat market seems intent on finding out how low we can go!