Morning Highlights


Highlights

  • FOMC started their 2-day meeting yesterday and the meeting will likely end today with an interest rate increase of 0.25%.
  • NOPA Crush report out today at 11:00 am CDT.
  • Export sales out tomorrow morning at 7:30 am CDT.
  • CHS Hedging has two upcoming energy hedging classes: March 16th in Colby, KS, and March 22nd in Champaign, IL. It is not too late to be signed up! You can register for both classes at www.chshedging.com.

Corn

  • Germany’s corn harvest is expected to increase 22% to 4.5 mmt for 2017.
  • Open interest for July corn futures increased 5,500 contracts.
  • Strong exports and strong ethanol crush numbers continue to support the corn complex.
  • Spreads: K/N 7.25¢ carry, K/U 14.25¢ carry and K/Z 21.75¢ carry.

Outlook: Higher on spillover support from the soybean complex.

 

Oilseeds

  • Germany’s winter rapeseed crop is forecasted to increase by 5.6% to 4.86 mmt for 2017.
  • A new terminal that is almost completed in Santos, Brazil is expected to add an additional 20% of export capacity or 5 mmt of additional grain for export.  All grain coming to this new terminal will come via rail instead of the traditional truck.
  • Dry weather on the northeastern side of Argentina will help progress harvest in the next 7-8 days.
  • Malaysian palm oil closed up 56 ringgits at 2,741 for June, up 19 for the week as improving exports help with the second day of gains.
  • Spreads: K/N 9.75¢ carry, K/Q 10.25¢ carry and K/X 6.25¢ inverse.

Outlook: After hitting their 3-month lows, technical buying is taking place as prices are considered a bargain.

 

Wheat

  • Germany’s winter wheat crop is forecasted to increase by 2.2% to 25.13 mmt for 2017.
  • Jordan has tendered to buy 100 tmt of wheat, sourced from optional origins.
  • Egypt’s GASC set a tender yesterday to buy an unspecified amount of wheat for shipment from April 15-25.
  • An area of low pressure is forecasted to move across the Southern Plains at the end of next week, increasing the chance of precipitation in that area.
  • Spreads: Mpls K/N 7.25¢ carry, Kansas City K/N 12.25¢ carry and Chicago K/N 15¢ carry.  

Outlook: Higher as the market finds strength in a weaker US dollar and strength from the row crops.