Morning Highlights


Highlights

  • It is being reported President Trump and President Xi of China will not meet with one another regarding a trade agreement being made until April at the earliest, if at all.
  • The US Senate will likely vote to terminate President Trump’s declaration of emergency at the southern border today. President Trump said this morning he will veto the bill, if necessary.
  • Asian stock markets were mixed overnight with the Nikkei down 3.22 points at 21,287.02. The Hang Seng in China was up 43.94 points at 28,851.39. In Europe, the FTSE gained 33.96 points at 7,193.15. In the US, the Dow closed 148.23 points higher yesterday at 25,702.89.
  • The US Dollar was up .268, trading at 96.780.
  • Crude oil in April is up $0.12 at $58.38 a barrel.

 Corn

  • The corn market was mixed overnight, finding support from wheat. It was rumored yesterday China was buying 3 mmt of US corn off the PNW causing prices to turn higher. However, futures retraced as freight and basis levels did not support the rumor and there has been no confirmation of the sale.
  • Export sales were 370 tmt in 2018-19 vs. expectations of 800-1200 tmt while exports for the 2019-20 crop year were 475 tmt vs. expectations of 0-300 tmt.
  • Corn on the Dalian exchange was higher overnight, up ½ a cent at 1,836 yuan per tonne.
  • There were 163 contracts delivered.
  • Iran purchased 200,000 mt of corn likely from the Black Sea region.
  • Spreads: H/K 9 ½ cent carry, K/N 9 ½ cent carry.

 Outlook: Mixed with lack of news and mixed export sales.

 Oilseeds

  • Soybeans were lower overnight, off from the gains seen yesterday with news lacking.
  • Export sales for soybeans were at 1.90 mmt vs. expectations of 1.20-1.90 mmt in 2018-19 and 3 tmt for the 2019-20 crop year vs. expectations of 0-150 tmt. Sales for 2018-19 in soybean meal were 226 tmt vs. expectations of 50-300 tmt while soybean oil was 14 tmt vs. expectations of 5-20 tmt.
  • Soybeans in China were down ½ a cent trading at 3,393 yuan per tonne. Soybean meal was up $3.90 per tonne trading at 2,553 yuan per tonne.
  • Malaysian palm oil futures were down 28 at 2,063 ringgits.
  • There were 222 contracts of soybeans delivered, 42 contracts delivered in soybean meal and no deliveries in soybean oil.
  • Spreads: H/K 11 ¼ cent carry......K/N 14 cent carry.

 Outlook: Lower on lack of news.

 Wheat

  • The wheat markets were mixed overnight with Chicago wheat up 4 cents. KC winter wheat was up 2 cents and Mpls May wheat 1 ¾ cents higher.
  • Export sales for 2018-19 were 260 tmt vs. expectations of 400-600 tmt. 2019-20 exports were 80 tmt vs. expectations of 50-150 tmt.
  • The German association of farm cooperatives forecast their 2019 wheat harvest at 24.20 million tonnes, 19.4% higher from a year ago. Germany is the EU’s second largest wheat producer behind France.
  • Paris milling wheat is up 2.25 euros per tonne at 187.75 euros supporting US futures.
  • There were 9 deliveries of Chicago wheat and 12 deliveries of Kansas City wheat.
  • Algeria bought 450,000 mt of French wheat paying between $231-234/mt. Jordan issued a tender to buy 120,000 mt of wheat.
  • Spreads: Mpls H/K 3 ¼ carry, K/N 3 cent carry, Kansas City H/K at a 7 cent carry, K/N 8 ¼ cent carry, Chicago WH/K 7 cent carry and K/N 7 ¼ cent carry.

 Outlook: Mixed, supported by stronger global prices.