Morning Wire


Highlights

  • Hurricane Irma now upgraded to a Cat 5, so this is keeping the attention of the market. It has been rated as one of the strongest Atlantic hurricanes in recent record. It’s currently tracking to shoot between Cuba and S. Florida.
  • Cotton futures were limit up, and orange juice futures were up strong on hurricane affect trade.
  • The US dollar index is -.060 @ 92.225, crude oil futures +.52 @ $49.18, DOW index futures are +34 @ 21,799.

Corn 

  • USDA weekly corn export inspections for last week totaled 31.398 mil bushels.
  • Weekly crop condition ratings had US corn at 61% G/E -1pt from last week. Corn denting is at 60%, behind the 5 year average of 68% for this time of year. Last year 74% of the crop was dented at this time.
  • A couple of reports of early corn harvest in central Illinois yesterday.

 

Outlook: corn was quietly higher, but seemed to be lacking any big story. It is still holding values above the 10 day moving avg [$3.54]. Calls: steady to a couple lower.

Oilseeds

  • USDA weekly bean export inspections for last week totaled 23.696 mil bushels.
  • Weekly crop condition ratings had US beans rated 61% G/E unchanged from last week.
  • Strategie Grains decreased their European rapeseed crop estimate due to recent rains in Northern Europe. The EU crop was lowered 260k tons, but still comes in at 21.65 mil tons up 6% from last year. The German crop will be poorer than expected, while the French crop was better.
  • China’s COFCO announced it is closing a soybean crush plant in Brazil.
  • CME reported 73 new Sept bean deliveries last night.

Outlook: beans found supportive technical buying, and more export sales showed up yesterday morning. Buyers surfaced as SX17 pushed up through the 100 day moving avg [$9.59], likely hitting some buy-stops. $9.81 level is overhead resistance. Some mild profit taking overnight. Calls: 2 lower

 Wheat

  • USDA weekly export inspections for last week totaled 9.276 mil bushels. This was a marketing year low.  Wheat loadings were limited at the Texas gulf due to the hurricane last week.
  • US spring wheat harvest was estimated at 89% complete.  This compares with 90% at the same time last year.
  • Egypt’s state wheat buys may push to 7 mil tons this year, up from the previous year of 6 mil tons, as GASC tries to fill the gap left from smaller local buying/procurement.
  • The Minneapolis Grain Exchange reported its best fiscal year volume in history, trading 2,806,706 contracts as of its Aug 31 year end.

 

Outlook:  Chicago wheat held onto gains, but ran out of steam at its 20 day moving avg [$4.47]. Technical short-covering bids lifted prices, but KWZ was the better price leader by the close. WU/Z firmed impressively and there were finally 143 WU deliveries show up last night as the spread was in to -.11 cents. HRW basis bids were better both domestic and export yesterday. Calls: 3 lower to start, HRS +3