Morning Highlights


Highlights

  • The 6-10 day forecast indicates a warmer and drier weather pattern for much of the United States. If this weather model holds, the likelihood of an early frost is slight.
  • The US dollar is weaker this morning, trading down 0.087 points at 91.795.
  • The DJIA is up 61 points at 22,118.
  • Crude oil is higher this morning, up $0.48 with the October contract at $48.71 per barrel.
  • October RBOB Gasoline futures last traded up $0.0162 at $1.6725.
  • September futures go off the board at 12:00pm CDT on Thursday. 

 Corn

  • Corn is trading slightly higher, likely due to some bargain buying after yesterday’s post-report selloff which resulted in the biggest one-day decline in corn futures in nearly a month.   
  • After the USDA posted higher corn yields in yesterday’s WASDE report, it seems there are traders who still believe that, based on current crop conditions, yields will decline in the October WASDE report. However, the next report could show an increase in harvested areas for corn and beans, which would ultimately offset any decline in yields.
  • South Korea’s NOFI purchased 138,000 tons of corn from optional origins in an international tender that closed today.
  • China will auction off 2.1 million tons of state reserve corn this week. 900,000 tons will come from 2014 reserves with 1.2 million tons from 2013.
  • Chinese corn futures traded higher overnight, but still remain down overall since Friday’s close.

Outlook: Slightly higher today on bargain-buying.      

Soybeans                   

  • Soybeans are trading higher on the overnight, coming closer to pre-report levels after dropping over 9 cents yesterday.  Most of the gains overnight are likely due to bargain buying, but there are traders who question the accuracy of the USDA’s yield numbers.
  • Interestingly, it seems pod counts are lower, but the USDA has implied that record heavy pod weights are enough to make up for the lack of pod counts. Some traders question the pod weights due to the mostly low recorded rainfall in August.
  • Malaysian palm oil futures traded higher for the third trade session in a row, closing up 44 ringgits.
  • Chinese soybeans traded higher overnight, yet remain lower this week compared to the close of last week.

Outlook: Higher on bargain-buying and disbelief in the USDA’s yield estimates.  

Wheat

  • The wheat markets are higher on the overnight session, seeing continued buying after post-report gains yesterday.
  • Final results in a quality survey for French wheat showed that the average protein level for 2017 French soft wheat harvest came in at 12.3%. Many of France’s primary importers use 11.5% protein as a benchmark for quality wheat.
  • France expects its non-European Union exports to more than double in 2017/18 compared to last season.
  • Egypt will attempt to filter the French and Romanian wheat cargoes containing poppy seeds before making a final decision on whether to re-export them or not.

Outlook: Lightly higher on follow through bargain-buying due to low wheat prices and a WASDE report that offered little price direction.