Written Commentary
MORNING AG OUTLOOK
Grains are lower. US stocks are mixed. USD is higher. Crude is lower. Gold is lower on profit taking in from of Fridays nonfarm payroll data. Coffee, cocoa, sugar and meats are lower. Commodities lower of talk of higher supply and lower demand. US Midwest forecast is mostly dry but cool. Rain today in ND, KY and S OH. Weekly US export sales delayed until Friday due to Monday’s holiday.
SOYBEANS
SX is near 10.28. Dalian soybean and soymeal appear range bound, vegoil higher. SX finally dropped below initial support on concern over lower US exports especially to China. Brazil continues to benefit from US trade war. Rabobank est Brazil soybean acres up 1.5 pct vs ly and recent average of up 3.5 pct. US soybean export sales delayed until Friday. Soymeal futures drifting lower on increase supply. World soymeal export prices now below key $300 support. USDA announced 185 mt US soymeal to Philippines. Global vegoil prices higher led by EU sunoil. Still, lower energy prices offers resistance to soyoil.
CORN
CZ is near 4.17. Dalian corn futures near 2 week high. Matif corn are making new lows. Corn futures are trying to balance talk of lower US exports versus drop in east Midwest final yields. US corn export sales are delayed until Friday. Some feel slower sales and approaching US harvest could weigh on futures. Brazil corn prices are lower on talk of lower demand. Matif futures firmed on talk of lower EU yields.
WHEAT
WZ is near 5.17. WZ range 5.00-5.50. KWZ is near 5.06. MWZ is near 5.76. Matif wheat futures are lower versus last month when farmers were slow selling and squeeze on shorts. Russia 12.5 pro lower and below $300 for first time since July. Hurricane Lorena is bringing rain into NW Mexico and could increase rain for US south plains. Weekly US wheat export sales delayed until tomorrow. Wheat futures are lower on talk of increase export competition and slower demand.
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