Morning Comments – May 7th

Headlines

  • Grains lower in the overnight

  • Weather to slow planting progress in central and northern Midwest

  • WASDE report scheduled for Thursday.

U.S. Weather

  • Showers slowed planting progress over the weekend in the southeastern Midwest and Delta.

  • Weekend planting conditions were favorable in central and western Midwest.

  • 1-5 day forecast brings moisture into the central and northern Midwest; slowing planting progress.

  • 1-5 day forecast will be drier in southern Midwest favoring planting in that region.

  • Continued dryness in Kansas and Northern Texas will add stress to the wheat crop in that region.

South American Weather

  • Weekend weather was mostly dry in Brazil with some light scattered rains in Rio Grande do Sul, Santa Catarina, north central Sao Paulo, western Mato Grosso and eastern Bahia.

  • Dryness is expected to persist in the corn growing regions of Brazil this week which will continue to stress the crop during a critical development phase.

  • Heavier rains are expected in Argentina this week which will stall fieldwork.

  • Drier weather in Argentina is expected in the 6-10 day forecast favoring harvest.

Commitment of Traders- Week ending May 1

  • Net long positions in the category of managed money increased for corn and soybeans in the latest CFTC Commitment of Traders report released on Friday.

    • Net long positions in corn increased to 220,874, up 68,648 from LW.

    • Net long positions in soybeans increased to 149,355, up 10,402 from LW.

    • Net short position in wheat declined to 46,825, down 23,832 from LW.

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China Trade Delegation

  • The trade delegation that met with China last week arrived back in the U.S and met with Trump on Saturday to “seek his decision on next steps.”

  • There continues to be “significant disagreement” over certain issues according to the Xinhua News Agency.

  • The U.S. delegation intends to meet with China every quarter to review progress.

  • Chinese negotiators may visit the U.S at the end of May or June for further discussion.

Shipping Delays in Argentina

  • On Thursday, a cargo ship ran aground and along the Parana River in Argentina.

  • The accident caused shipping delays over the weekend with around 60 shipps delayed on Friday.

  • The vessel was freed over the weekend and traffic is returning to normal.

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