Afternoon Market Highlights


Highlights

  • A big harvest weekend is expected this weekend.
  • Hurricane Florence weakens but is still on target to make landfall later today.
  • Energy markets are mostly weaker with crude oil down 1.55 at $68.81/barrel.
  • The US$, CD$ and gold are weaker, and Wall Street is stronger.

Corn

  • Big crop ideas took corn prices lower, with the December contract making a new contract low of $3.48 ¾.Next line of support is near $3.35. Additional pressure came from weakness in the wheat market.
  • Closes: December at $3.50 ½, down 2 cents, July at $3.77 ½, down 1 ½ cents and red Dec at $3.88 ¾, down ¼ cent.
  • CIF premiums were 1 cent weaker for September and 2 cents firmer for October.
  • This weekend is expected to be a big harvest weekend. With hurricane Florence being downgraded from a Category 4, many in its path are hopeful for rain amounts in inches rather than in feet.
  • We sold 143k tonnes of corn to Costa Rica for the 2018-19 marketing year.
  • Spreads: Z/H 12 ¼ carry, Z/N 26 ¾ carry, Z/Z 38 ¼ carry. 

Oilseeds

  • Soybean prices were lower on big crop ideas and renewed trade tariff concerns. The November contract was unable to hold above its 10-Day MA.
  • Closes: November at $8.33 ¼, down 6 ¾ cents, July at $8.82 ½, down 5 cents, and red November at $8.91 ¼, down 5 cents. Products were lower with meal down $3-$4 bucks and soyoil off a freckle.
  • Weekly export sales were in line with trade estimates.
  • We sold 108k tonnes of beans to Mexico for 2018-19 and we sold 120k tonnes of beans to unknow destinations (40k for 2018-19 and 80k tonnes for 2019-20).
  • Spreads: X/F 13 ¾ carry, X/H 26 ½ carry, X/K 39 ¼ carry and X/N 49 ¼ carry.

Wheat

 

 

  • The wheat market spent the day on the defensive from yesterday’s increase in world stocks. Funds have been liquidating their long positions in Chicago and KC.
  • Weekly export sales were not stellar, but they were in line with what the trade was expecting.
  • December closes: Mpls at $5.62, down 3 cents, KC $5.01 ¾, down 4 ¾ cents and Chicago at $4.97, down 9 ¾ cents.
  • Algeria is in the market for 600k tonnes of optional origin wheat and Saudi Arabia is also in the market for 595k tonnes of wheat.
  • Morocco tendered for 336k tonnes of US durum.
  • Spreads: Mpls Z/H 16 carry, Kansas City Z/H 21 ¼ carry, Chicago Z/H 20 ¾ carry. 

Cattle

  • Cattle prices were mixed with live cattle weaker on lack of cash trade and softer product values and feeder cattle stronger on weakness in the corn market. The October live cattle contract remains nearly $3 above the cash market.
  • Closes: October lives at $110.80, down 67 cents and October feeders at $154.95, up 32 cents.
  • Boxed beef values were weaker this morning with Choice down another 81 cents, moving toward support at $202.00 and again at $200.00.
  • Packer margins were decent at $202.50.
  • Cash markets not yet developed this week with offers at $112 on a live basis and $174 dressed. 

Lean Hogs

  • Hog prices were higher on oversold stronger cash and product values.
  • Closes: October at $55.65, up 15 cents, December at $55.92, up 47 cents and February at $65.35, up 77 cents.
  • Cash was stronger at $49.96, up $1.09. Products were stronger with bellies at $97.32, up 3.46.