Afternoon Market Highlights


Highlights

  • Cool and wet weather continues to lag harvest progression in the Midwest. The two-week forecast shows a positive outlook of dry weather.
  • Sources say, Hurricane Michael has been the most powerful Hurricane to hit the Florida panhandle. The storm has tapered off from a category 4 to a tropical storm and advances toward SE Virginia tonight.
  • As of 2:30pm, the Dow is trading down once again at 25,309, down 1.13%. The federal rate increase and fear of no resolution on the U.S.-China trade war pushed the markets lower.
  • As of 2:30pm, the U.S. $ is trading lower, Argentine Peso is down 1.56% at 36.59 and the Brazil Real is up .55% at 3.77.
  • The Export Sales report comes out tomorrow at 7:30am CDT. 

Corn

  • Corn prices bounced back from a friendly USDA report. Corn yield decreased 0.6 bu/acre to 180.7 bu/acre for 18/19. U.S. grain carryout average was estimated at 1.919 billion bushels but fell to 1.813 billion bushels.
  • Corn hit a high of $3.73, right below the 100-day moving average of $3.74. Corn did settle above the 50-day moving average mark of $3.66 on the close.
  • Argentina and Brazil 18/19 corn crop remained at 41 and 94.5 million tons respectively.
  • December corn closed up 6½c at $3.69¼, July closed up 6¼c at $3.94 and December 2019 closed up 5½c at $4.02¼.
  • Spreads: Z/H 12c carry, Z/K 19¼c carry, Z/N 25c carry.

 Oilseeds

  • The soybean market climbed back up after three down days. Soybean yields did increase to 53.1 bu/acre from the previous estimate of 52.8 bu/acre. Harvested acres were changed from 88.9 to 88.3 acres.
  • The October bean production decreased, due to the decline in harvested acres, to 4.69 billion bushels for 18/19. This resulted in a lower bean carryout from the average trade estimate of 898 million bushels to 885 million bushels.
  • Argentina and Brazil soybean production remained the same at 57 and 120.5 million tons respectively.
  • November soybeans closed up 6c at $8.58¼, July closed up 6¾c at $9.10¼ and November 2019 closed up 6¾c at $9.25.
  • Spreads: X/F 13¾c carry, X/K 39¾c carry, X/H 26½c carry, X/N 51¼c carry. 

Wheat

  • The wheat market fell on a larger U.S. carryout. The U.S. wheat carryout rose 6 million bushels to 956 million bushels.
  • Australian wheat decreased 1.5 million tons to 18.5 million tons for 18/19,due to dry weather conditions.
  • December Chicago wheat fell 2½c at $5.08, Minneapolis December wheat decreased 2¼c at $5.89½, and Kansas December wheat settled down 2½c at $5.13¾.
  • Spreads: MWE Z/H 10½c carry, KW Z/H 24c carry, CW Z/H 20¾c carry. 

Livestock

  • Hearing reports of another African swine fever outbreak occurring in China. Steps have been taken to halt live pig transportation to help decrease the spread of the virus.
  • Hog prices increased on the nearby and fell across the board for the remaining months.
  • October lean hogs rose 20c at $68.67½ and December fell $1.52½c at $54.42½.
  • Live and feeder cattle were mixed on the day.
  • October live cattle closed up 77½c at $112.62½, while October feeder cattle closed up 95c at $156.72½.
  • Today’s estimated hog and cattle slaughter are 473,000 and 117,000 respectively.