Afternoon Market Highlights
4/4/2019 4:01:54 PM
- The U.S.-Mexico border conflict has caused the price of avocados to jump almost 50% in the last week as fears of a border closure continue.
- The USDA Crop Production and USDA Supply and Demand reports will be released Tuesday, April 9th at 11:00 AM CDT.
- Crude oil was trading lower today at $62.14, down 0.32.
Corn futures were higher today on thoughts there could be planting delays due to rain expected in the Midwest. There is also hope in the market place that a trade deal will be in place soon with China. Export inspections were lackluster this morning, coming in below the low end of the trade estimates at 537,000 tonnes.
- India will allow 100,000 tonnes of non-GMO corn to be imported to the country with a reduced duty of 15%. Typically the country has a 60% duty on corn.
- Closes: May at $3.65 ¼ up 2 ½; July at $3.74 ¼ up 2 ¼; September at $3.82 ½ up 2; December at $3.92 ¼ up 1 ½.
- Spreads: K/N 13 ¼ cent carry; N/U 10 ½ cent carry; N/Z 14 ¾ cent carry; Z/H 13 ½ cent carry.
Soybeans finished the day higher as reports surfaced that the U.S. China trade deal is progressing well, raising hopes that the deal may be coming to a close soon. Export sales were also supportive this morning, with soybean exports coming in at 1.9 mmt, above the high end of the trade expectations of 1.8 mmt. The May contract broke through its $9.00 resistance, and was able to close above it.
- President Trump and Vice Premier Liu He will have a meeting in Washington this afternoon. Reports were released this morning stating that Trump is expected to announce the date for a summit with Chinese President Xi today, but this was later denied.
- May soy meal closed at $311.90 up 0.90 and May soy oil closed at 29.20 up 0.40.
- Closes: May at $9.06 ½ up 7 ¾; July at $9.19 ½ up 7 ¼; August at $9.25 ½ up 7 ½; November at $9.39 ½ up 7 ½.
- Spreads: K/N 13 ¼ cent carry; N/Q 5 ¾ cent carry; N/X 20 cent carry; X/F 9 ½ cent carry.
The wheat markets were mixed today as Minneapolis wheat continues to tumble lower, again setting fresh contract lows. There continues to be an overabundance of spring wheat and no place to go with it. Another point of concern to the spring wheat market is that since China and Canada are in a trade dispute regarding canola, Canada could plant more spring wheat instead of canola. Kansas City wheat finished the day higher, and Chicago was mixed with most contracts closing within a penny of where they opened.
- Russia provided wheat aid to North Korea through the World Food Programme. It was reported that Russia sent 50,000 tons of wheat.
- May closes: Chicago at $4.70 ¾ down ¼; Kansas City at $4.39 up 2 ½; Minneapolis at $5.27 down 7 ½.
- Spreads: Chicago K/N 3 cent carry; Kansas City 5 ¾ cent carry; Minneapolis K/N 9 ¼ cent carry.
The livestock markets were higher across the board today, with lean hogs closing limit up in multiple contracts. Lean hogs will have expanded limits of $4.50 tomorrow. Fears continue to circulate regarding African swine fever, giving a boost to the prices for lean hog futures. The cattle markets were higher today as well, with April feeder cattle closing above their 20-day moving average of $146.25. April live cattle closed below their 20-day moving average of $127.70. April live cattle options will cease trading tomorrow, April 5th.
- Weekly export sales were 10.8 tmt for pork and 20.5 tmt for beef.
- Feeder closes: April at $146.325 up 1.925; May at $150.075 up 3.40; August at $157.20 up 3.175.
- Live closes: April at $127.55 up 1.80; June at $121.575 up 2.60; August at $118.225 up 2.45.
- Lean hog closes: April at $79.575 up 0.475; May at $90.825 up 2.70; June at $97.85 up 3.00.
- Packer margins were estimated at $88.85 for beef and -$1.30 for pork.
- Boxed beef values on 55 loads estimated as follows: Choice at $226.83 up 0.68; Selects at $218.50 down 0.47.
- Pork product values 100 loads estimated as follows: carcass cutouts at $82.20 up 1.94; loins at $72.37 up 0.29; ribs at $131.24 up 2.31; hams at $65.78 up 3.13; bellies at $148.18 up 2.39.
- Today’s slaughter is estimated at 121,000 cattle and 477,000 hogs.