Afternon Market Highlights


Highlights

The grains markets were mostly easier ahead of the weekend and next week’s USDA data. Next week is also the end of a month and the end of a quarter. Stimulus economic relief package moved to the House for approval. 

  • The energy markets were mostly lower with crude oil down 1.31 at 23.18/barrel.
  • The US$ continues to falter, down 1.563 at 99.48, the gold market was up 6-7 bucks at 1693 and the CD$ was stronger at 0.7137.
  • Wall Street traded the past three days in positive territory with the DJIA closing up 1351 at 22592 and the NASDAQ up 413 at 7797.
  • USDA acreage and stocks report to be released March 31st at 11 AM CDT.
  • StatsCan acreage report is scheduled for April 4. 

Corn

The corn market suffers from sizable losses in the ethanol industry from increased work-from-home status for many folks around the world as we battle the wrath of the CoronaVirus. Most months eeked out a slightly positive close, despite big planting numbers expected in next week’s USDA report. 

  • Closes: May at $3.48 ½, up ¼ cent, July at $3.54 ¼, up ¾ cent, September at $3.59, up ¾ cent, December unchanged at $3.67 ½.
  • Weekly export sales were reported at 1.814 mmt, at the high end of what the trade was expecting.This is still a decent number after taking out the 756 tmt of corn sold to China last week.
  • International Grains Council pegs 2020/21 world production at 1.116 billion tonnes, up from 2019/20 at 1.12 billion tonnes.
  • Spreads: K/N 5 ½ carry, N/U 4 ¾ carry, N/Z 13 carry, Z/N1 16 ½ carry.

Oilseeds

Soybean prices were mixed with the front month the victim of technical selling and a bout of profit taking ahead of next week’s acreage and stocks report. We could be seeing a bit of month-end / quarter-end positioning. Prices garnered underlying support from strength in the soymeal market. 

  • Closes: May at $8.80 ¼, down 1 ¼ cents, July unchanged at $8.84 ¾, August at $8.85 ¾, up ¼ cent, November at $8.79, up 1 ½ cents. The products were mixed with meal up 1-2 bucks and oil down 14 points.
  • Weekly export sales were decent at 905 tmt, above the top end of what the trade was expecting.
  • Worries shuffle about over the disruption of supplies of South American beans and meal.
  • Supplies are tight in China, resulting in increased demand for feedstuffs. Concerns are that inventories could get even tighter as some plants there look at slowing down their operations in leu of the virus.
  • Spreads: K/N 4 ½ carry, N/Q 1 carry, N/X 6 ¼ inverse, Q/X 7 ¼ inverse, X/F ¾ cent inverse, X/H 17 ½ inverse, X/N 6 ½ inverse. 

Wheat

Wheat prices were on the defensive from profit taking after the recent rally. Prices drew underlying support from decent weekly export sales. The country moved fair piece of wheat on the recent rally. Demand continues for breads and pasta with much of the US now sheltering within the confines of their homes. 

  • May closes: Mpls at $5.31 ¼, down 6 ¼ cents, KC at $4.87 ¼, down 13 ¾ cents, Chicago at $5.69, down 11 cents.
  • International Grains Council pegs the 2020/21 world production at 768 million tonnes, up from 2019/20 at 763 million tonnes.
  • Weekly export sales totaled 1.1 mmt, above what the trade was looking for.
  • Spring wheat country is expected to see warmer weather next week.Ideas are that folks could be out in the fields by mid-to late April.
  • Spreads: Mpls K/N 8 ¾ carry, U/Z 10 carry, Kansas City K/N 3 ¾ carry.