Afternoon Market Highlights
4/8/2019 3:38:10 PM
The Ag markets were quiet amidst position evening ahead of tomorrow’s USDA data. There has been no confirmation of a deal done between the US and China. The energy markets were stronger with crude oil trading above $64/barrel.
- The USDA S&D report is scheduled for tomorrow at 11 AM CDT.
- Winter wheat conditions came in at 60% G/E versus 56% last week and 30% last year. 3% of the crop was headed out compared to 4-5% on average.
The corn market traded lower on position squaring ahead of tomorrow’s USDA S&D report. There are forecasts for big amounts of moisture (rain and snow) this week for parts of SD, NE, IA, MN and WI. Closes: May at $3.59 ¾, down 2 ¾ cents, July at $3.68 ¼, down 2 ¾ cents and December at $3.89, down 1-cent. December 20 closed unchanged at $4.14 ¾.
- Inspections were estimated at 1.0-1.3 mmt. Actual numbers were reported at 1,035,423 tonnes, ringing the bell at the low end of the trade estimates.
- This year’s corn seedings came in at 2% complete through Sunday, April 7, 2019 (in-line with trade estimates).
- The market does not seemed bothered about the wet weather forecast for parts of the Upper Midwest.Ideas are that it is too early to get too excited about delayed plantings. With the equipment out there these days, the thought is that the farmer only needs a couple of weeks of good weather to get the crop in the ground. If this were May, it might be a whole different ball game.
- Spreads: K/N 8 ½ carry, N/U 8 ½ carry, U/Z 10 ½ carry, Z/H 13 carry, Z/N 26 ½ carry.
Soybean prices traded both sides as the funds get their positions where they want to be ahead of tomorrow’s USDA report at 11 AM CDT and optimism about seeing a deal soon between the US and China. Closes: May unchanged at $8.99, July unchanged at $9.12 and November down ½-cent at $9.32 ¼. The November 20 closed at $9.67 ¾.
- Inspections were estimated at 600-900 tmt. The actual numbers were at 888,160 tonnes, top end of trade estimates.
- The canola market closed lower on lack of fresh supportive news.
- Spreads: K/N 13 carry, N/Q 5 ¾ carry, N/X 20 ¾ carry, X/F 10 carry, X19/N20 at a 32 ½ cent carry.
The wheat market traded lower on technical selling and ideas that the Canadian farmer could switch acres from canola to spring wheat. Mpls deferred months made new contract lows on plentiful old crop supplies and talk of more acres getting planted to wheat in Canada. May closes: Mpls at $5.24, up 1 ½ cents, KC at $4.30 ¼, down 1 and Chicago K/N at $4.63 ¾, down 4 cents.
- Inspections were estimated at 300-600 tmt. Actual numbers came in at 538,808 tonnes, friendly enough number.
- Spring wheat seedings were reported at 1% complete. This compares to 2% last year and 5% on average.
- Spreads: Mpls K/N 8 carry, Kansas City K/N 6 ¾ carry and Chicago 2 carry.
- More snow and rain are headed for NW MN and Eastern ND this week.
The livestock market was mixed with the cattle market mostly higher and hogs mostly lower. This week’s rain and snow event could slow movement of cattle and hogs. Closes: April feeders at $146.75, up 62 cents, August feeders at $157.82, up 1.10 and October feeders at $159.37, up 40 cents. Live cattle closed down 32 cents in April at $125.72 and up 15 cents in June at $120.50. The lean hogs closed at $78.70, down 32 cents for April and $97.82, down 1.15 for June. The cash hog markets were weaker.
- AM Boxed Beef values on 63 loads: Choice at $229.13, up 2.20 and Selects at $220.58, up 30 cents. Resistances in the Choice is at $233.00.
- The cash markets were at $126 on a live basis and $204-$206 dressed last week. The cash market is expected to be steady this week.
- AM Pork Product values on 67 loads: Carcass cutout at $83.86, up 2.02, loins at $75.18, up 2.40, ribs at $133.36, down 4.24, hams at $65.86, up 2.85 and bellies at $153.06, up 4.30.
- The cash hog markets were weaker: IA/MN down 1.78 at a weighted average of $74.88 and WCB down 3.64 at a weighted average of $72.88.