Afternoon Market Highlights


Highlights

The ag markets were quiet as the market awaits news of the trade talks and as the USDA data begins to roll out. Prices drew additional support from this week’s cold snap, which has slowed movement across the Midwest. The Federal Reserve is thought to be taking a cautious stance on its economic outlook as they look to be patient in raising borrowing costs during the year. 

  • Currencies were mixed with the US$ weaker and the CD$ stronger. Gold is stronger this afternoon.
  • Weekly export sales are scheduled for tomorrow but are said to be for the week prior to the Christmas Holiday.
  • The energy market continued its trek higher with crude oil up 96 cents at $54.27/barrel. Resistance is thought to be from $55.50-$60.0/barrel. 

Corn

The corn market traded higher on technical buying, firmer cash markets on lack of movement and a weaker US$.  Country movement was quiet with some operations closed while many were not open for dumping truck grain because of the frigid temperatures around the US. Closes: March at $3.81 ¼, up 4 cents, July at $3.97 ½, up 3 ¾ cents, December at $4.03 ¾, up 2 ¾ cents. 

  • The March contract pushed through the $3.80 resistance.
  • Weekly ethanol production dropped 19k at 1.012 million barrels per day.
  • Spreads: H/K 8 ¾ carry, N/U 2 ½ carry, Z/H 9 carry. 

Oilseeds

The soybean market chopped around amidst disappointing yields in Brazil and hopes for good things to come from the trade talks. Forecasts call for chances of rain in Brazil next week. The March closed just shy of its 200-Day MA of $9.22. The November closed above most of its moving averages. Closes: March at $9.21, up 2 cents, July at $9.47 ½, up 2 ¼ cents, November at $9.60, up 2 cents. 

  • The canola market traded lower on a stronger CD$ after the Fed’s decision to leave rates unchanged.
  • Some Brazilian farmers plan to hold back on additional soybean sales to see if they can reap better prices because of disappointing yields in the early harvest.
  • Spreads: H/K snuck out to 14 cents today and settled at 13 ¾ cents, H/X 39 carry, K/N 12 ½ carry.
  • Argentina reached a deal with the European Union to export biodiesel to them. 

Wheat

The wheat market traded weaker early in the session on a poor demand outlook. Prices turned higher midday on weakness in the US$. The wheat market continues to trade in ranges with the absence of current information from the USDA.  March closes: Mpls at $5.71 ¾, up 3 ¾ cents, KC at $5.02 ¾,, up 2 ½ cents and Chicago at $5.16 3/4  

  • The market awaits next week’s USDA winter wheat seedings report for 2019-20.
  • The KC market closed a couple cents above the $5 support area.
  • The March Mpls closed 1 ¾ cents above its 50-Day MA of $5.70.
  • Japan has not been seen in the market for wheat this week.
  • There are concerns that there could be some damage to the winter wheat crop from the frigid temps this week. 

Cattle

The cattle market traded higher on cold weather and slowed movement. The front month was weaker as positions get moved out to the deferred months.  There is talk of some processing plants being closed during the cold snap across the US. Closes: March feeders at $144.27, up 2 cents, April feeders at $145.82, up 12 cents, April lives at $128.15, up 35 cents and June lives at $117.75, up 35 cents. 

  • Packer margins are holding strong at $80.20. this compares to $57.15 a week ago.
  • AM Boxed Beef values on 92 loads: Choice at $218.39, up 26 cents and Selects at $213.73, up 1.16. The C/S spread was at 4.66.

Lean Hogs
The hog market was mostly lower on weaker products. Losses were limited from slowed movement and plant closures during this week’s cold snap. Closes: April at $62.22, down 27 cents, and June at $76.12, down 25 cents.

  • Packer margins were slightly lower at $26.20.
  • AM Pork Product values on 168 loads: Carcass at $67.30, down 1.37, loins at $64.98, down 3.63, ribs at $126.18, down 30 cents, hams at $4911, up 54 cents and bellies at $115.52, down 1.66.