Afternoon Market Highlights


Highlights

  • A new threat of another round of tariffs to the tune of $200 billion renewed the confidence of the spec sellers. 

  • All grain and livestock futures were negative.

  • Excellent growing weather remains in the extended forecasts.

  • The USDA’s updated S&D report is scheduled for tomorrow, July 12th at 11 AM CDT.

  • Energy markets are reeling with crude $3.21 lower at $70.90/barrel.

  • The US$ is slightly higher with gold $12 weaker. The Dow is off 200 points today.

 

Corn

  • The corn market traded lower as funds continue to remain active sellers.

  • Ethanol production off sharply by 34k bpd.  This is the lowest level in 8 weeks.

  • The producer is not engaged but these prices are not giving any incentive to do so.

  • The CME is increasing storage rates, but it won’t go into effect until December 2019.   

  • Closes: September at $3.40, down 7.75 cents, December at $3.5325, down 7.50 cents and March at $3.65, down 7.25 cents.

  • Spreads were mostly flat with the U/Z at 13.25 carry, Z/H at 11.75 carry, Z/N at 24.75 carry.

 

Oilseeds

  • The soybean market buried today under the pressure of tariff threats. A while back Trump floated this idea but now that the first round is in place the renewed threat has more teeth.

  • The bean market could see the biggest impact in the WASDE report tomorrow if the USDA figures in the impact of the tariffs.  They said they would do so but we’ll have to wait and see how they do it as this is an unprecedented situation.

  • Bean Closes: August at $8.33, down 22.75 cents, November at $8.4825, down 23.25 cents, January at $8.5825, down 23 cents.

  • Products were a slightly weaker, with meal closing at $330.50, down $1.70, and soyoil closing at 28.43, down 56 points.

  • Spreads: Q/X 15.25 carry, X/F 10 carry, X/N 37 carry.

 

Wheat

  • The wheat market traded sharply lower for the second straight day.

  • Russia is willing to export some reserve wheat, vintage 2014-2016. They are not worried about a down crop this year.

  • Harvest yields and quality are both looking pretty darn good. 

  • September closes: Mpls at $5.255, down 12 cents, KC at $4.74, down 19 cents, Chicago at $4.7175, down 20.25 cents.

  • Spreads: Mpls U/Z 19.25 carry, Kansas City U/Z 24.75 carry, Chicago U/Z 18.75 carry.

 

Cattle

  • The cattle market was hit with big losses today.

  •  August live cattle closed down $1.575 at $103.85. The feeder cattle market felt the live cattle weakness also. August feeder cattle closed at $149.45, down $2.40.

  • Choice boxed beef values were up slightly $.12, and the choice/select spread widened to $10.30.

  • The feeder cattle index was last at $145.08, down $1.67.

 

Lean Hogs

  • The hog market followed yesterday’s limit down move with more weakness today. August hogs closed at $68.80, down $1.10.

  • Products were sharply lower on butts and picnics.

  • Tariff fears were present in the livestock markets as well today.