Afternoon Market Highlights


Highlights

  • It was reported that the U.S.-China trade talks have continued to progress, with U.S. treasury secretary Steven Mnuchin saying that both sides have agreed on an enforcement method to regulate an agreement. A final agreement has not been released.
  • The World Pork Expo has been cancelled this year as a precaution to prevent African swine fever from entering the U.S.
  • Weekly export sales will be released tomorrow morning at 7:30AM CDT.
  • Last trading day for April lean hog futures and options is Friday, April 12th. 

Corn

Corn closed mostly higher today after trading in a narrow range. Poor weather is expected throughout much of the U.S., which raises concerns that there could be a delay in planting.

  • South Korea purchased 136,000 metric tonnes of corn through an international tender. The corn was purchased for prices between $188 and $189 a tonne, with arrival in South Korea in November.
  • Weekly ethanol production was up 3,000 bpd at 1.0 million bpd. Ethanol stocks were down 799,000 at 23.19 million barrels
  • Estimates for weekly export sales range from 600,000 to 950,000 metric tonnes.
  • Closes: May at $3.61 ¾ up 1 ¾ cents, July at $3.70 ¾, up 2 ¼ cents, December at $3.90 ¾, up 1 ½ cents.
  • Spreads: K/N 8 ¾ carry, N/U 8 carry, U/Z 11 ½ carry, Z/H 13 ¾ carry, Z/N 27 ¼ cents. 

Oilseeds

Soybeans closed higher today on weather concerns and technical buying. The market remains vulnerable to short covering rallies with the funds holding an estimated net short position. The market squirreled back above $9, still optimistic of a trade deal soon and China’s resumption of US soybean purchases.

  • The USDA announced a sale of 133,759 metric tonnes of soybeans for delivery to unknown destinations during the 2019-19 marketing year.
  • Estimates for weekly export sales range from 800,000 to 1,150,000 metric tonnes for soybeans, 100,000 to 300,000 metric tonnes for soy meal, and 8,000 to 30,000 metric tonnes for soy oil.
  • Closes: May at $9.02, up 3 ¼ cents, July at $9.15 ¼, up 3 ½ cents, November at $9.34 ½, up 2 ¾ cents. Red November closed at $9.70, up 2 ¼ cents (contract high is at $10.05).
  • Spreads: K/N 13 ¾ carry, N/Q 5 ½ carry, N/X 19 carry, X/F 9 ¾ carry, X/N 31 ½ carry.   

Wheat

The wheat market was mixed today, with Chicago and Kansas City lower and Minneapolis higher. The spike in Minneapolis futures today is due to a blizzard occurring in the key spring wheat states, which could cause planting delays. Chicago wheat fell lower today on news that

  • Bangladesh purchased a tender of 50,000 metric tonnes of 12.5% protein wheat for $268.92 a tonne for shipment 40 days after signing.
  • Ukraine has planted 85% of their spring wheat crop.
  • Estimates for weekly export sales range from 300,000 to 500,000 metric tonnes.
  • May closes: Mpls at $5.30 ¼, up 7 ¼ cents, KC at $4.26 ¼, down 2 cents, Chicago at $4.58, down 1 ½ cents.
  • Spreads: Mpls K/N 6 3/4 carry, U/Z 14 ¾ carry (anything over a dime is not a bad idea in Mpls), Kansas City K/N 7 ½ carry, N/U 11 ¾ carry. 

Livestock

The livestock market was mixed with cattle down on lack of a strong cash market and hogs having some fun as the speculative crowd continues to buy hogs. The rumor mill has been winning from fears of talks about African Swine Fever. Another big deal is hams. Hams have been as high as $72 and are currently around $64.  A more average price is around $52, so prices are creeping down.

  • Feeder closes: April at $145.175 down 1.15; May at $149.225 down 1.075; August at 157.025 down 0.725.
  • Live closes: April at $125.857 down 0.075; June at $119.95 down 0.45; August at $117.00 down 0.725.
  • Lean hog closes: April at $78.90 up 0.4; May at $86.975 up 0.7; June at $96.45 up 1.2.
  • 510 head were offered at the fed cattle exchange and 0 were sold.
  • Daily slaughter was estimated at 120,000 cattle and 476,000 hogs.
  • AM boxed beef values on 78 loads: Choice at $228.76 up 0.44; Selects at $219.32 up 0.52.
  • AM pork product values on 123 loads: Carcass cut outs at $85.45 up 2.34; loins at $72.01 down 3.18; ribs at $131.02 down 4.79; hams at $63.79 up 0.41; bellies at $167.92 up 15.09.