Afternoon Market Highlights


Highlights

  • Chatter today was that we may not see a deal on NAFTA until after the November elections.
  • South American currencies continue to falter.
  • It was noted today that we are looking at the driest start for the US Midwest planting season since 1979.
  • IEG Vantage estimated the 2018-19 corn acres at 89.0 million, up 1.0 million from the USDA’s May estimate.They also estimated the 2018-19 US bean acres at 89.4 million versus the USDA at 89.0 million acres. Other spring wheat acres were pegged at 12.4 million versus the USDA at 12.67 million.
  • The energy markets were mixed with crude oil holding above $71/barrel.
  • The US$ is stronger, the CD$ and gold are weaker.
  • Wall Street falls on inflation fears and a possible interest rate increase next month from increased consumer spending and lack of progress with US/China tariff issue.

Corn

  • Corn caught a bid, closing 5 cents higher on a struggling Brazilian corn crop, talk of potential planting delays in the US from rain events (more rain in the forecast for this weekend), corn /bean spread trading and a tighter stocks outlook for 2018-19.
  • Closes; July at $4.02 ¼, up 5 ¾ cents, September at $4.10 ½, up 5 ¾ cents and December at $4.19 ¼, up 5 cents.
  • CIF premiums were 1-2 cents weaker for May/June.ECB processor bids were mostly unchanged. PNW bids were unchanged for May at 115N, 2 cents stronger for June at 112N and no bid posted to October.
  • Spreads; N/U 8 ¼ carry, U/Z 8 ¾ carry, Z/H 8 carry, Z/N 16 carry. 

Oilseeds

  • Soybeans settled slightly higher, but well off their highs after the July failed to push through Monday’s high of $10.26. Prices saw pressure from active corn/soybean spread trading.
  • Closes; July at $10.18 ¾, up 1 cent, August at $10.22, up 1 cent and November at $10.24 ¾, up 1 ¼ cents.
  • The products closed lower on bigger than expected meal and oil stocks at the end of April.
  • The canola market closed higher, in thin volume, on a slow planting pace and lack of moisture in Manitoba.
  • CIF premiums for J/J are 2-4 cents stronger. ECB processor bids are mostly unchanged with some feeling firmer. PNW bids were no bid for May and June, while October was down 10 cents at 75X. Brazil bids were 16-23 cents weaker for June.
  • The Brazilian Real was weaker today.
  • April’s NOPA crush report showed bean crushings at 161.016 million bushels, record levels for the month.On the other hand, soyoil stocks grew to 5-year highs at 2.092 billion pounds. April soymeal stocks were huge at 946,291 tons.
  • Spreads; N/Q 3 ½ carry, N/X 6 ¼ carry, Q/U ½ carry, Q/X 2 ¾ carry, X/F 3 ¾ carry, X/N 7 ¼ inverse.

Wheat

 

 

  • The wheat market traded higher with Mpls taking the lead on dry soil conditions for the Northern Plains area.KC lagged Mpls amidst forecasts for chances of rain across the winter wheat areas. Bargain hunters emerged near the lows, which helped push prices higher.
  • July closes; Mpls at $6.06 ¼, up 4 ¾ cents, KC at $5.28 ½, unchanged, Chicago at $5.09 ¾, up 1 ¾ cents. Mpls gained on KC and Chicago.
  • Egypt only bought one cargo of wheat at $220/tonne from Ukraine for September shipment.
  • Spreads; Mpls N/U 7 carry, U/Z 11 ¾ carry, Kansas City N/U 18 ¾ carry, U/Z 26 carry. 

Livestock

  • The cattle market was lower on weaker cash cattle prices expected this week. The cattle market closed $1.92 lower in the August feeder cattle and $1.65 lower in the June live cattle market.
  • Nebraska and Kansas saw cattle trade at $117 in light volume, $5 lower than last week.
  • The hog market traded lower on spillover weakness in the cattle market and commercial selling. June lean hogs closed $1.42 lower.
  • The cash cattle market is quiet with no offers posted yet this week. Packers are showing bids $6 under last week’s trade.
  • AM Boxed Beef values; Choice at $231.86, down 21 cents and Selects at $210.17, up 1.05 with the spread at $21.69.
  • AM Wholesale Pork values on 209 loads; Carcass at $72.62, down 21 cents, loins at $74.38, down 2 cents, ribs at $147.32, up 16 cents, hams at $49.65, down 88 cents and bellies at $98.85 up 1.24.
  • Today’s slaughter is estimated at 119k for cattle and 461k for hogs.