Afternoon Market Highlights


Highlights

  • President Trump has threatened to place $11 billion in tariffs on products from the European Union.
  • The energy markets were mostly lower today, with May crude oil trading at $64.12, down 0.28.
  • Last trading day for April lean hog futures and options is Friday, April 12th.

 Corn

The corn markets were mixed, but mostly higher today following a bearish WASDE report. The rise in corn futures can be attributed to short covering and weather concerns as the Midwest is set to have storms this week. The May contract set a fresh contract low of $3.55 ¼.

  • The U.S. carryout for corn was 2.035 billion bushels, above the average estimate of 1.991. The world carryout was 314.01, above the average estimate of 311.16 million tonnes.
  • Brazil’s corn production was increased to 96.00 million tonnes vs. 94.50 million tonnes in March. Argentina’s corn production was increased to 47.00 million tonnes vs. 46.00 million tonnes in March.
  • Closes: May at $3.60, unchanged; July at $3.68 ½, unchanged; September at $3.77 ¼, unchanged; December at $3.89 ¼, unchanged.
  • Spreads: K/N 8 ½ cent carry; N/U 8 ¾ cent carry; U/Z 12 cent carry; Z/H 14 ¼ cent carry; Z/N 28 cent carry.

 Oilseeds

Soybeans were mixed today following the WASDE report. The soybean carryout was below the estimate, which was friendly. There is a lack of fresh news about a trade deal with China, which continues to drag on. The May contract finished unchanged, and below the 20-day moving average of $9.00.

  • The U.S. carryout for soybeans was 895 million bushels, below the average estimate of 898. The world carryout was 107.36 million tonnes, below the average estimate of 108.04 million tonnes.
  • Brazil’s soybean production was increased from 116.50 million tonnes in March to 117.0 in April. Brazil’s 2017-18 production was increased from 120.8 to 122.0 million tonnes. Argentina’s production remained at 55.0 million tonnes.
  • Closes: May at $8.98 ¾, unchanged; July at $9.11 ¾, unchanged; August at $9.17 ½, up ¼; November at $9.31 ¾, down ½.
  • Spreads: K/N 12 ¾ cent carry; N/Q 5 ¾ cent carry; N/X 20 cent carry; X/F 10 cent carry; X/N 32 cent carry.

 Wheat

The wheat markets were lower today following a bearish world carryout from the WASDE report. There have been positive reports about the condition of the winter wheat crop, and there is a lot of wheat in the market. The May Chicago wheat contract closed below its 20-day moving average of $4.63. The May Minneapolis contract has an RSI of 26.8. An RSI below 30 generally indicates oversold conditions.

  • The U.S. carryout of wheat was 1.087 billion bushels, higher than the average trade estimate of 1.072 billion bushels. The world carryout was 275.61 million tonnes, higher than the average estimate of 271.00 million tonnes.
  • Egypt rejected a shipment of 63,000 tonnes of French due to higher than acceptable levels of ergot. Egypt purchased 60,000 tonnes of Romanian wheat to replace the rejected French shipment.
  • Algeria tendered to buy 50,000 tonnes of milling wheat. The tender deadline is Thursday, April 11th. The shipment period is June.
  • May closes: Chicago at $4.59 ½ down 5 ¾; Kansas City at $4.26 ½ down 5; Minneapolis at $5.23 down 1.
  • Spreads: Chicago K/N 4 ½ cent carry; Kansas City K/N 7 ¾ cent carry; Minneapolis K/N 8 cent carry.

 Livestock

The livestock markets were mostly lower today. The hog market was lower on paper trading, as the products remain at firm values heading into Easter. Many lean hog contracts finished the day limit down, and will have expanded limits of $4.50 per cwt tomorrow. May hogs closed just above their 10-day moving average of $86.28. The cattle markets were lower today on a lull in demand ahead of the grilling season, as well as on paper trading. April feeder cattle closed above their 50-day moving average of $145.885. April live cattle closed below their 100-day moving average of $126.20.

  • Feeder closes: April at 146.15 down 0.80; May at 150.175 down 0.65; August at 157.60 down 0.25.
  • Live closes: April at $125.90 down 0.20; June at $120.35 down 0.525; August at 117.65 down 0.375.
  • Lean hog closes: April at $78.525 down 0.075; May at $86.45 down 3.00; June at $95.15 down 3.00.
  • AM boxed beef values on 68 loads: Choice at 228.97 up 0.30; Selects at 219.97 down 0.91.
  • AM pork product values on 204 loads: carcass cutouts at $83.23 down 0.06; loins at $75.71 up 0.59; ribs at $135.73 up 1.69; hams at $63.47 down 0.63; bellies at $151.47 down 1.05.