Morning Wire


Highlights

  • In weather, the US forecast model is calling for a temperature drop of 10 to 20 degrees 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.
  • The September jobs report showed the US added 136,000 jobs in September putting unemployment at a 5 decade low of 3.5%.
  • The Trump administration is said to be releasing details for his biofuels plan today.
  • China remains on holiday, marking 70 years of communist rule. China and the US are scheduled for talks next week in hopes of easing the tariff war.
  • Outside markets as of 6:33 am CDT: The Dollar is down 86 at 98.778, crude oil is up $0.02 at $52.66, the Dow Jones is up 29.53 at 26,078.04, the Nasdaq is up 87.02 at 7,872.27. Gold up $2.50 at $1,503.55. The Nikkei was up 68.46 points at 21,410.00, the FTSE is up 22.76 points at 7,099.94.

 Corn

  • Corn traded lower in the night session, down 1 ½ cents. For the week, December 2019 corn rallied 15 cents. That’s the biggest gain in 4 months.
  • Technically, support for corn lies at $3.85 with resistance stacking up at $391 ½, $3.93 ½ and $3.96 ¾.
  • France has only harvested 6% of its maize crop, last year they were 42% harvested.
  • Funds were buyers of an estimated 1,000 contracts yesterday, leaving them net short 132,900 contracts.

    Outlook:  Corn 1 to 3 cents lower on technical selling.   

     

    Oilseeds

  • Soybeans were trading quietly lower overnight. For the week, November 2019 soybeans have rallied $0.27 ½, December 2019 soybean meal has rallied $7.40 a ton, and December 2019 soybean oil has rallied 1.04 cent per lb.
  • China continues to buy soybeans from the US, buying 252 tmt yesterday for shipment 19/20 marketing year. China has booked 3.25 mmt of soybeans from the US since early September.
  • Technically, support for soybeans lies at $9.07, with resistance is at $9.17 ¼.
  • Support for November soybeans lies at $8.82, with resistance at $9.32 ¾.
  • Palm oil was up 12 ringgits, settling at 2112 ringgits.

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

 

Wheat

  • The wheat complex was lower overnight on technical selling. For the week, December 2019 Chicago wheat is unchanged. For the week, December 2019 Mpls spring wheat is down $0.15 ½, while KC wheat was down 2 cents.
  • Strength in the Mpls spring wheat market stems from quality concerns.
  • China bought 130 tmt of white wheat yesterday from the US for the 19/20 marketing year.
  • South Korea bought 60 tmt of feed wheat, likely from a Black Sea origin.
  • Paris milling wheat was 0.560 euros lower at 175.50 euros.

 Outlook: Chicago steady to 2 cents lower, KC wheat 1 to 3 cents lower, and Mpls steady to 3 cents higher on ongoing quality concerns for DNS.