Morning Highlights


Highlights

  • U.S.-China tensions are mounting as China plans to implement national security laws in Hong Kong that will overrule current laws in the city.
  • China did not set an economic growth target for the first time in decades while simultaneously promising to spend approximately $500 billion USD at its economy to attempt to create 9 million jobs.
  • The monthly cattle on feed report will be released at 2:00 PM Central today.
  • The weekly Commitment of Traders report will be released at 2:30 Central today.
  • In observance of Memorial Day, the grain markets will be closed Sunday night and Monday. Trade will resume Monday night at 7:00 PM Central.
  • Outside markets as of 7:00 AM Central: July crude oil down $1.49 at $32.43; gold up $9.00 at $1,730.90; US Dollar Index at 99.749 up 0.379; Dow futures up 39 points at 24,415.

Corn

  • Corn was lower overnight, pressured by increasing tension between the U.S. and China as well as weaker energy markets overnight.
  • The French corn crop was reported at 93% planted versus 90% the prior week. Of the emerged corn, 86% was good to excellent versus 87% the week prior.
  • Syria’s General Foreign Trade Organization issued a tender of 50,000 tonnes of corn.

Outlook: 1 to 3 cents lower.

Oilseeds

  • Soybeans were lower, feeling pressure as the U.S.-China tensions seem to be increasing. Reports have indicated that China intends to follow through on the Phase One deal, but the trade still seems concerned. Soybeans traded to their lowest level in over a month during the overnight session.
  • Syria’s General Foreign Trade Organization issued a tender of 50,000 tonnes of soymeal.
  • Chinese soybeans were up 50 cents and settled at 4,399 yuan per ton; soymeal was up $0.60 and settled at 2,748 yuan per ton, and soy oil was down 48 points and settled at 5,438 yuan per ton.
  • Malaysian palm oil was down 40 ringgits and settled at 2,167 ringgits.

Outlook: 2 to 4 cents lower.

Wheat

  • The wheat markets were lower overnight, feeling pressure from tensions with U.S.-China relations. Chicago wheat has been the biggest loser, followed by Kansas City and Minneapolis.
  • The Kansas wheat tour concluded yesterday and is projecting the state will produce a 284.4-million-bushel crop versus the USDA’s projection of 305.5 million bushels. The average yield found in the state was 44.5 bpa versus the USDA’s 47 bpa.
  • A Philippine importer has issued a tender for approximately 168,000 tonnes of feed wheat with shipment between July and September.
  • A South Korean mill purchased 36,200 tonnes of U.S. wheat in a tender that closed yesterday.  The original tender was for 54,000 tonnes.
  • Jordan issued a new tender for 120,000 tonnes of wheat. The tender closes on May 28th.
  • The FranceAgriMer group reported that the French wheat crop was rated 57% good to excellent versus 55% the week prior.
  • Egypt’s strategic wheat reserves are reported as sufficient until October.

Outlook: Weaker across the board.