Afternoon Market Highlights


Highlights

· The US dollar index was lower today, down 0.457 points at 89.751.

· The DJIA higher today, trading up 44 points to 24,646.

· Nearby crude oil was lower today, down $0.01 at $59.29.

· January NOPA Crush is out on Thursday, February 15th at 11 AM CST.

· The Lunar New Year in China begins on Friday, February 16th. China’s markets will be closed from Lunar New Year Eve on the 15th through the 21st of February.

· Markets will be closed Monday, February 19th for Presidents’ Day. Markets will close on Friday like normal and open again Monday night at 7 PM CST.

· March options expire February 23rd and First Notice Day for March futures is February 28th.

· USDA Prospective plantings report will be out Thursday, March 29th.

Grains and Oilseeds:

Corn

The corn market traded in a small range today of 2 ½ cents, trading both sides of unchanged, pressured by weaker wheat markets and supported by stronger soybean markets. The March contract settled down ½ cent at $3.66 ¾, the May was down ½ cent at $3.74 ¼, the July was down ½ cent at $3.82, and the December contract closed down 1 cents at $3.96.

Current spreads: H/K 7 ½ ¢ carry, K/N 7 ¾ ¢ carry, N/Z 14 ¼ ¢ carry.

· March corn sees resistance at $3.67 ¾ and $3.69 with support at $3.62 and $3.57.

· The March contract put in a high at 3.68 ½ today, the highest trade since October 25th.

· Nearby corn basis bids at elevators in the Midwest were mostly steady today, while bids at processors were firmer.

· Mexico is set to import 13 million tonnes of corn in 2018, which would be similar to what they imported last year. They are also expected to produce 27 million tonnes of corn in 2018, up slightly from 26 million tonnes last year.


Oilseeds

Soybeans were yet again supported by the soybean meal market, as traders worry about dry weather in Argentina effecting the amount of soybeans available to be crushed this upcoming year in the world’s number one soymeal exporter. The March soybeans closed up 9 cents at $10.11 ¾, May beans were up 9 cents at $10.22 ¼, July soybeans closed up 8 ¾ cents at $10.32 and November soybeans closed up 4 ¼ cents at $10.19 ¼.

Current spreads: H/K 10 ½ ¢ carry, K/N 9 ¾ ¢ carry, N/X 12 ½ cent inverse.  

· Western areas of Argentina see showers this week, but dryness spreads in central and eastern areas. Brazil is seeing about average rainfall this week and only sees small harvest interruptions.

· The soymeal market traded higher for the sixth straight session of gains, settling at contract highs in multiple months. March soymeal reached a high of $371.60 and May reached $372.80 as a high.

· March soybeans see resistance at $10.13 ¾ with support at $10.04 ¾.

· Soymeal futures were stronger today, as March was up $6.20 to $365.20 while soybean oil was lower with March down 0.26 points to 31.57 cents.

Wheat

Chicago wheat traded 3 ½ - 4 ¾ cents lower, Kansas City traded 4 ¼ -4 ¾ cents lower and Minneapolis trade was 7 ½ - 8 ¼ cents lower. The Minneapolis premium over KC and Chicago is $1.35 ½ - $1.49 ¼ for March contracts and $1.33 ¼ - $1.48 ¾ for May contracts.

Current Spreads: Chicago H/K 13 cent carry, KC H/K 14 ¾ ¢ carry, Mpls H/K 12 ¾ ¢ carry, Mpls K/N 9 ½ ¢ carry.

· After hitting six month highs yesterday, the wheat markets were mostly lower today pressured by profit taking and KC wheat was supported by dry weather in the southern plains.

· According to the National Grain Trade Centre, on Tuesday China sold wheat reserves at a state auction. 279,935 tonnes of wheat were sold at an average price of 2,431 yuan or $384.46 per tonne.

· Jordan did not buy any wheat in their tender for 100,000 tonnes of wheat on Tuesday, prices were not disclosed but Jordan has struggled to make purchases in the past few months, due to quality control and payment term uncertainties.

· In the next 10 days snow is expected in the northwestern parts of Kansas and light rains are possible in the eastern parts of Oklahoma and Texas next week. Temperatures are seen above average for this time of year with no cold air threat looming in the plains or Midwest.

· March Chicago wheat sees resistance at $4.64 ½ with support at $4.51 ¾ and $4.48 ¼. Minneapolis March wheat sees resistance at $6.15 ½ with support at $6.01 ¼, today’s low, and $6.00.

Livestock

The live cattle market was higher today as February cattle gained $0.075 at $126.825 while April cattle gained $0.25 at $124.775. Feeder cattle traded mixed today, as March closed down $0.05 at $147.275 and April up $0.25 to $149.50.

· USDA reported daily cattle slaughter at 117,000 head, up 1,000 head from one week ago and up 2,000 head from a year ago today.

· Boxes were mixed today as Choice traded up $0.58 to $208.82 and Selects were down $0.24 at $203.73.

Lean hogs were mixed today as the February contract traded $0.225 higher to settle at $73.35 while the April contract traded $1.125 lower at $69.425.

· USDA reported daily hog slaughter at 462,000 head, down 4,000 head from a week ago today and up 31,000 head from a year ago today.

· This morning’s carcass values were $0.42 higher at $77.13. Bellies were $0.16 lower at $122.69 with 222 loads traded.