Morning Highlights


Highlights

  • The FOMC did raise the interest rate by 0.25% as expected.  The current data shows that there will likely be two additional rate hikes in 2017 as long the US economy remains strong.
  • President Trump has hit yet another roadblock in his revised travel ban by US District Judge Derrick Watson of Hawaii.  Watson put a restraining order on the travel ban, but Trump is willing to take it all the way to the Supreme Court to push the order through.
  • CHS Hedging has an upcoming energy hedging class: March 22nd in Champaign, IL. It is not too late to be signed up! You can register for the class at www.chshedging.com.

Corn

  • In the 1-5 day forecast, rains in central and northwestern Brazil will help improve moisture for the Safrinha corn crop.
  • Open interest on July corn increased by 5,800 contracts.
  • Japan’s corn shortage is likely over for the mean time as logistics out of the PNW have allowed shipments to get back on track in order to execute demand.
  • 80 of nearly 200 US Catholic dioceses are going to allow the consumption of corned beef on Friday for St. Patrick’s Day.
  • Israel bought 40 tmt of corn from optional origins on tender that closed yesterday.
  • Spreads: K/N 7.25¢ carry, K/U 14¢ carry and K/Z 21.5¢ carry.

Outlook: Higher on strong demand from ethanol, feed, and exports.

Oilseeds

  • In the 1-5 day forecast, drier weather in Argentina will help dry out wet areas and push the soybean crop closer to maturity.
  • Malaysian palm oil closed up 55 ringgits at 2,796 for June, up 74 for the week on low output forecasts.
  • The NOPA crush report that came out yesterday was bearish.  Crush was 142.8 million bushels vs. the estimated 146.1 million bushels and soyoil stocks were 1.77 billion pounds vs. the estimated 1.728 billion pounds.
  • Spreads: K/N 9.5¢ carry, K/Q 10.5¢ carry and K/X 7¢ inverse.

Outlook: Higher as technical buying will move prices up before the March 31 Prospective Plantings report comes out.

Wheat

  • Dry weather in the Southern Plains and freezing temperatures in eastern half of the US has raised concerns for the 2017 US wheat crop.
  • According to Strategie Grains, France’s 2017 soft wheat crop is estimated at 143.9 mmt vs. last month’s 143.8 mmt.
  • The European Union is set to export more wheat to France.  French wheat crops yielded below average last year.
  • Spreads: Mpls K/N 6¢ carry, Kansas City K/N 11.75¢ carry and Chicago K/N 14.5¢ carry.  

Outlook: Higher as the dry weather and below normal temperatures worry traders about the size and condition of the US wheat crop.