Afternoon Market Highlights


Highlights

  • WTI crude surged as OPEC and its allies agreed on cutting oil production by 1.2 million barrels per day. Nearby WTI crude prices hit a high of $54.22, up $2.73.
  • As of 2:30pm, the U.S. $ is down 24 pts. at 96.57, the Argentine Peso is down 0.85% at 37.37 and the Brazil Real rose 0.75% at 3.90.
  • The Export Inspections report will be released Monday, December 10th at 10:00am CST.
  • The Crop Production and USDA Supply and Demand report will come out next Tuesday, December 11th at 11:00am CST. Average estimates for U.S. grain carryout for corn, soybeans and wheat are 1.738, .945 and .956 billion bushels respectively.

Corn

  • The corn market increased on strong export sales.
  • Weekly corn export sales rose above estimates of .800-1.100 mmt at 1.177 mmt. This is the second consecutive week to have export sales above 1.000 mmt with Mexico and Japan being the top destinations for the week.
  • March corn settled 6¼c above the 100-day moving average of $3.79¼. Corn increased 7¾c since last Friday.
  • March corn closed up 2¾c at $3.85½, July closed up 3c at $3.99¼ and December 2019 closed up 1¾c at $4.03.
  • Spreads: H/K 7½c carry, H/N 14c carry, H/Z 17¾c carry. 

Oilseeds

  • Soybean prices traded higher from strengthening export numbers and an optimistic outlook on defining the details of the trade truce.
  • Soybean export sales were on the upper end of estimates of 600,000-900,000 mt at 890,900 mt. These sales were up 262,000 mt from the previous week with our top destination being Argentina. Soymeal and soyoil export sales came in between estimates at 287,200 mt and 21,100 mt respectively.
  • January soybeans pushed higher, up 36c from the 50-day moving average of $8.80¾. January soybeans have not been able to touch the highs of $9.23¾ from the initial G-20 news on Monday but climbed 22c on the week.
  • January soybeans closed up 7¼c at $9.16¾, July closed up 7c at $9.53¼ and November 2019 closed up 6¾c at $9.61¼.
  • Spreads: F/H 12½c carry, F/K 25c carry, F/N 36½c carry, F/X 44½c carry. 

Wheat

  • The wheat market rallied higher from better than anticipated weekly export sales.
  • Wheat export sales surged above estimates of 300,000-600,000 mt to 711,700 mt. This is the second largest export sale estimate for the year and up 334,000 mt from the previous week.
  • The U.S. sold 224,000 mt HRW to unknown locations for the 18/19 marketing year.
  • March Chicago wheat jumped back above the 50-day moving average of $5.23¼. March Minneapolis wheat closed the gap between the 50-day moving average of $5.86¼, settling 7½c below. March KC wheat had its first gain in five sessions, only settling 9¼c below the 50-day moving average of $5.20¾.
  • March Chicago, Minneapolis and KC wheat rose 15½c, 5¾c and 11¾c respectively week on week.
  • March Chicago wheat rose 15¾c at $5.31¼, Minneapolis March wheat increased 12¼c at $5.81½, and Kansas March wheat settled 16½c higher at $5.12.
  • Spreads: MWE H/K 4½c carry, KW H/K 11c carry, W H/K 4½c carry. 

Livestock

  • Hog prices fell slightly on the nearby and rose on the deferred months from steady export sales. December hogs struggled on the week, down $3.625 since last Friday. Nearby hogs settled $2.39 below the 200-day moving average of $56.64 and 10c under the 100-day moving average of $54.35.
  • Weekly pork export sales remained steady at 20,000 mt, down 900 mt from last week. Roughly half of the sales for the week were to Japan and Mexico.
  • Pork bellies increased $11.92 to $136.06/cwt. Carcass and picnic ham’s rose in the morning report to $75.38 and $52.75/cwt, respectively, on 134 loads. Pork margins rose $1.40 to $41.75.
  • December lean hogs fell 27½c to $54.25 and February increased 97½c to $67.87½.
  • Live and feeder were mixed on the day from poor export sales. December live cattle failed to hold above $118 but settled 90c above the 50-day moving average of $117. Nearby feeders lacked any strength as they continued to rest below the 200-day moving average of $146.62. Nearby live cattle rose 97½c while January feeders fell 85c on the week.
  • The beef export sales were negative at -100 mt due to cancellation of sales from South Korea and Hong Kong.
  • The USDA morning boxed beef highlights showed choice cutouts rose 90c to $213.57/cwt, while selects increased $2.03 to $200.25/cwt. Beef margins decreased $4.85 to $121.55.
  • December live cattle closed down 5c at $117.90, while January feeder cattle closed up 27½c at $144.37½.
  • Today’s estimated hog and cattle slaughter are 473,000 and 121,000 respectively. This week’s estimated total hog and cattle slaughter are 2.375 million and 602,000 respectively.