Morning Briefing – US markets slightly higher this morning on Globex

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US grain markets

The markets reacted to the Crop Progress report, release Monday after the close. Corn rebounded slightly, supported by the planting delays. Wheat benefited from bargain hunters after its drop on a three weeks low. Soybeans remained stable. The funds were net buyers on all three markets.

 

Corn

The May contract closed 3c up at 381c. It trades this morning 1c higher.

Funds were net buyers of 9500 contracts.

According to the Crop Progress report, 5% were planted as of the 22nd of April, number below last year’s 14% at date. The markets expected 7%.

Monday’s export inspections of 1.7mT were up from a week earlier, above market expectations and above the average needed to meet the annual USDA target.

The Brazilian government estimates the country’s 2017/2018 ethanol production at 7.33b barrels. The number is slightly lower than for 2016/2017.

 

Soybeans

The May contract closed 1c up at 1022c. It trades this morning 5c higher.

Funds were net buyers of 6500 contracts.

Private exporters reported a sale of 130.6kT to Argentina.

Monday’s export inspections of 479kT were slightly up from a week earlier but remain the average needed to meet the annual USDA target. The market expected a number between 300kT and 600kT.

In March, Chinese soybeans imports from the US dropped by 27%, while imports from Brazil rose 33%.

 

Wheat

The May contract closed 11c up at 472c. It trades this morning 2c higher.

Funds were net buyers of 6500 contracts.

According to the Crop Progress report, 3% of spring wheat was planted as of the 22nd of April, where the 2013-2017 average at date is 25%.

31% of the winter wheat is in good to excellent condition, number unchanged from a week earlier. In France, 78% of the grains are in good to excellent condition.

Monday’s export inspections of 619kT were up from a week earlier, above market expectations and slightly above the average needed to meet the annual USDA target.

Algeria bought 199kT of optional origin hard wheat for shipping in July.

Jordan seeks 101kT of wheat for shipping in September/October.

Bangladesh seeks 49kT of milling wheat for shipping 40 days after the close of the tender.

 

Other markets

The main US stock indexes closed sharply lower. The S&P dropped 1.3% and the DJ 1.7%. Treasury yields rose to 3%, a 4 years high, weighing on share prices.

Crude oil prices dropped after having reached a three years high on Monday. The uncertainty surrounding the Iran nuclear deal weighs on the markets. The June WTI trades this morning around $67.70 and the Brent around $73.90.

The Dollar remains supported by rising US Treasury yields. The €/$ pair trades this morning around 1.2230.

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