Morning Briefing – US markets stable this morning on Globex

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On October 31, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The operators reacted to the Crop Progress report released Monday evening after the close. The markets closed lower amid harvest pressure, slow exports and a higher dollar.

The corn harvest advanced slightly lower than expected.

The soybeans harvest advanced slightly faster than expected.

Winter wheat planting advances slower than expected.

Corn

The December contract closed 2c down at 365c. It trades this morning around its closing levels.

According to Monday evening’s Crop Progress report, 63% of the corn was harvested as of the 28th of October. The number matches the 2013-2017 average. The market expected 64%.

The last export inspections of 653kT were sharply down from a week earlier and below market expectations.

EU corn imports are up 14% year to date.

Soybeans

The November contract closed 5c down at 833c. It trades this morning 2c higher.

According to Monday evening’s Crop Progress report, 72% of the soybeans were harvested as of the 28th of October. The market expected 70%. The 2013-2017 average at date is 81%.

The last export inspections of 1.3mT were slightly up from a week earlier and above market expectations.

South Korea bought 69kT of Brazilian origins.

EU soybeans imports are up 5% year to date. Soymeal imports are down 19%.

Wheat

The December contract closed 7c down at 500c. It trades this morning 1c lower.

According to Monday evening’s Crop Progress report, 78% of the winter wheat was planted as of the 28th of October. The market expected 82%. The 2013-2017 average at date is 85%. 52% of the grains are in good to excellent condition.

The last export inspections of 393kT were slightly up from a week earlier and within market expectations.

EU soft wheat exports are down 24% year to date. Barley exports are down 5.5%.

Ukraine said it basically finished planting its winter wheat, with a total acreage up 3.45% from last year.

Other markets

The main US stock indexes closed higher. The S&P rose 1.6%. D. Trump said in an interview that he’s ready to start talks with China to lower trade tensions between the two countries.

Crude oil prices dropped further. The markets expect yet higher US stocks in this afternoon’s EIA report. A rising number of active drilling rigs in the US and a higher dollar also weigh on prices. The December WTI trades this morning around $64.40 and the December Brent around $76.40.

The Dollar rose farther against the Euro. A series of good US economic indicators should allow the FED to proceed with its interest rate increase program. The €/$ pair trades this morning around 1.1340.

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