Afternoon Market Highlights


Highlights

  • Trade estimates for weekly export sales tomorrow: 800 tmt-1.1 mmt for corn, 600-900 tmt for beans, 175-400 tmt for meal, 8-26 tmt for soyoil and 300-600 tmt for wheat.
  • CHS Hedging is offering Grain Hedging I & II classes at the IGH office on January 15, 2019. You can register for the class at www.chshedging.com.
  • The weekly export sales report is scheduled for tomorrow at 730 AM CST. The Commitment of Traders report will be delayed until Monday, December 10th.
  • The next USDA monthly S&D is scheduled for Tuesday, December 11th at 11 AM CST.
  • Energy markets are mostly weaker with crude oil trading over a buck lower.
  • The US$, gold and the CD$ are weaker. Wall Street is weaker on US/Chinese trade war jitters. 

Corn

  • Corn prices were lower in sympathy with the wheat and soybean markets. The March low was at $3.80 on December 4th and again today, leaving the gap from November 30th unfilled ($3.78-$3.80).
  • Closes: March at $3.82 ¼, down 1 ½ cents, July at $3.96 ¼, down 1 ¼ cents, December at $4.01 ¼, down 1 cent.
  • Gulf premiums were unchanged for Dec and 1 cent weaker for January. ECB processor bids are mostly unchanged.
  • Ongoing trade tensions between the US and China kept prices on the defensive.The investment crowd awaits confirmation to recent rumors US ag product sales to China.
  • The USDA announced the sale of 107k tonnes of corn to Mexico for the current marketing year and 91k tonnes for the next marketing year.
  • The average trade estimates for next week’s USDA report: 2018-19 carryout at 1.738 bb (1.700-1.79), world stocks at 307.59 mmt (304.19-310.00). 

Oilseeds

  • Soybean prices traded lower on expectations for big crops out of South America and uncertainty about a resolution to the current trade issues with China.
  • Closes: January at $9.09 ½, down 4 cents, July at $9.46 ½, down 4 cents and November at $9.54 ½, down 2 ¼ cents.
  • Gulf premiums were 2 cents firmer for December and 1 cent firmer for January. ECB processor bids were mostly unchanged. Brazil premiums were down 20.
  • StatsCan pegged their canola crop at 20.34 mmt. This compares to 21.33 mmt last year.
  • The average trade estimates for the 2018-19 US soybean carryout is at 945 mb (875-975) and world stocks at 112.79 mmt (110.80-114.00).
  • The canola market traded higher on a smaller than expected Canadian canola crop and weakness in the CD$.

Wheat

  • Wheat prices traded lower on poor export demand and ample supplies of global stocks.
  • March closes: Mpls at $5.69 ¼, down 6 ¼ cents, KC at $4.95 ½, down 2 ½ cents and Chicago at $5.15 ½, don 2 ½ cents.
  • The KC March got within 7 ¾ cents of its contract low today.
  • Egypt bought 350k tonnes of wheat (290k Russian and 60k Ukrainian) for LH Jan shipment.
  • The Canadian wheat crop is estimated at 31.77 mmt versus 31.40 mmt in September and 29.98mt last year.
  • The Canadian spring wheat crop is estimated at 23.511 mmt versus 22.167 mmt last year.
  • The average trade estimates to the 2018-19 Us wheat carryout is at 956 mb (924-984) with world stocks at 266.79 mmt (264.32-270.00). 

Cattle

  • Cattle prices were lower on lack of fresh supportive news and no cash trade. Cash trade is expected to take place yet this week.Last week’s trade was around $118 on a live basis with offers this week closer to $120.
  • Cold, wintry weather conditions have slowed movement of cattle.
  • Closes: Feb lives at $121.80, down 62 cents and Jan feeders at $144.25, down $1.22.
  • Today’s slaughter is estimated at 121k head.
  • AM Boxed Beef values on 57 loads: choice at $212.83, down 43 cents and Selects at $198.06, up 1.20. The C/S spread was last at $14.77.

Lean Hogs

 

 

  • Hog prices were lower on weak cash prices and lack of fresh supportive news.
  • Closes: December at $54.52, down 1.35 and Feb at $66.90, down 82 cents. The December contract remains over a $7 premium to cash, with 6 days to expiration (last trade day is December 14).
  • Today’s slaughter is estimated at 471k head.
  • Cash trade was 53 cents higher at $47.38 ($44.00-$48.25).
  • AM Wholesale Pork Values on 165 loads: Carcass at $71.59, down 11 cents, loins at $64.66, up 69 cents, ribs at $117.31, down 2.44, hams at $56.19, up 2.65 bellies at $119.63, down.22.