Morning Highlights

Scott Strand

Apr 13, 2020

By Jim Warren

Highlights 

  • Outside markets as of 7:00 am CT: Dollar up 013 at 99.495, Crude Oil down $.14 at $22.62, Dow down 116 at 23502 and Gold down $5.70 at $1747.10.
  • OPEC+ agreed yesterday to cut 9.7 million barrels/day of oil production starting May 1st, with a declining scale of cuts over the following 2 years.
  • FSA announced that farmers now have 12 months to repay commodity loans (Marketing Assistance Loans) instead of 9 months, as part of the CARES act of 2020.
  • Smithfield Foods in shutting down a pork processing plant in South Dakota indefinitely, due to cases of COVID-19.  The plant is estimated to process 4-5% of the nation’s pork.
  • APHIS confirmed the presence of the highly pathogenic H7N3 avian flu in a South Carolina turkey flock.  Reports say the Phase 1 deal with China includes regionalization language that would prevent a country wide ban, but the EU has banned all poultry and products from the U.S.

Corn

  • USDA lowered their estimate of corn used to produce ethanol by 375 million bushels, down to 5.05 billion bushels, in Thursday's report.
  • Argentina’s corn is reported to be about 1/4 harvested.USDA left their production estimate for the country at 50mmt. 

Outlook: Slightly lower to start, with low volume in overnight trade. 

Oilseeds

  • USDA announced on Friday a sale of 120tmt soybeans to Unknown.  60tmt for 2019/20 and 60tmt for 2020/21 crop years.
  • Brazil’s Real currency is trading lower in overnight trade.
  • Palm oil prices were lower overnight with reports of rising stockpiles in Malaysia.They are lowering their export duty by .5% to 4.5% for May. 

Outlook: Mixed start to the day is expected. 

Wheat

  • USDA announced Friday a sale of 165tmt HRW wheat to China.  55tmt for 2019/20 and 110tmt for 2020/21 crop years.
  • Temperatures fell into the teens over Northwest Kansas into Northeastern Colorado this morning, and even the panhandles of Texas and Oklahoma fell into the 20’s.  The NASS Crop Progress report out this afternoon will show updated wheat growth stages.
  • Ukraine’s weekly grain exports were up 20% last week.  Russia’s wheat exports are expected to be higher in April due to the weakness in their Ruble currency. 

Outlook: Strength to start the day session with low temperatures in the Plains.  Paris wheat futures are not traded today as Euronext is on Easter holiday.