Afternon Market Highlights
4/13/2020 4:05:30 PM
Discussions are beginning to take place about possibly getting the US back in operation. The how and when are a long way from being developed as the President looks to collect a panel of folks to take the first steps toward re-opening the US in hopes of seeing much needed economic relief and normalcy to people’s lives once again.
- The energy markets are mixed with crude oil on the defensive, trading down 34 cents at $22.42/barrel.
- The US$ is slightly lower, down 26 at 99.49, the gold market is 11-12 bucks higher at $1.751/ounce and the CD$ is up 0.0035 at 0.7205.
- DJIA down 328 at 23390, S&P down 19 at 2760 and NASDAQ up 38 at 8192.
- StatsCan delayed their 2020 acreage estimates until May 7.
- May options expire at the close on April 24th. First Notice Day for May futures is April 30th with all long positions being reported after the close on the 29th.
Corn prices opened slightly higher and traded higher overnight on spillover strength in the wheat market. Prices turned lower midday on spillover weakness in the soy complex. Prices drew additional pressure from news of a pork plant closing its doors over the weekend (due to the CoronaVirus). There are concerns that there could be a real loss of feed needs from the ongoing weakness in the hog and cattle markets.
- Closes: May at $3.31 ½ (support at $3.30), July at $3.36 ¼, down ½ cents, September at $3.40 ¾, down 1 cent, December at $3.49 ¾, down 1 cent.
- Gulf premiums were 2 cents weaker for April and May.
- Corn plantings were reported at 3% complete, on par with trade expectations.
- Spreads: K/N 4 ¾ carry, N/U 4 ½ carry, N/Z 13 ½ carry, Z/N1 23 carry.
Soybeans were slightly lower at the open, but prices tumbled midday on continues meltdown in the livestock markets. The ongoing weakness in the cattle and hog markets has created uncertainty surrounding future needs for feedstuffs, by which the soymeal market has undergone recent pressure.
- Closes: May at $8.54 ¼, down 9 ¼ cents, July at $8.62 ¼, down 8 ¾ cents, August at $8.65 ¼, down 8 ¼ cents, November at $8.70 ½, down 5 ¼ cents. The products were weaker with meal down 3.90 at 288.60 and oil down 51 points a t 26.90.
- Gulf premiums were 1 cent weaker for April and May.
- The USDA did not report on soybean plantings for this week (too early in the season).
- Spreads: K/N 7 ¾ carry, N/Q 3 carry, N/X 8 ½ carry, X/F 3 carry, X/H 9 inverse, X/N1 ½ carry.
Wheat prices traded higher at the open on crop concerns in the US Southern Plains, Europe and the Black Sea Region. Prices drew additional support from concerns about food supplies. Prices retreated midday on weakness in the row crops and strong Ukraine exports, despite efforts to retain adequate supplies during virus situation. Egypt’s GASC is tendering for optional origin wheat for LH May/FH Jun shipment.
- May closes: Mpls at $5.27 ½, down 5 cents, KC at $4.93 ¼, up 1 ¼ cents, Chicago at $5.55, down 1 ½ cents.
- Weekly export inspections were well above what the trade was looking for at 609 tmt. By class breakdown at: 221 NSW.....121 HRW.....33 SRW.....153 White Winter......14 HAD and 66 Mixed.
- There was chatter today that Russia’s wheat harvest this year is expected to top last year’s wheat harvest, despite adverse weather conditions throughout the growing season.
- Spring wheat planting was reported at 5% complete for week ending April 12, in line with trade expectations.
- Winter wheat conditions were reported 62% G/E, unchanged from last week and on par with what the trade was expecting.
- Spreads: Mpls K/N 12 carry, U/Z 11 ¼ carry, Kansas City K/N 6 ¾ carry, N/U 7 carry, Chicago K/N ½ carry. Mpls May sits at a 35 cent premium to KC May.