Afternoon Market Highlights
4/16/2019 4:05:17 PM
US/Chinese trade talks continue with everything said to be on the table. China considers altering tariffs on some US goods. The energy markets were mostly stronger this afternoon with crude oil back over $64/barrel.
- The US$ is stronger, above 97, the CD$ is stronger at 0.7500 and gold is 12-13 dollars weaker at $1,276/ounce.
- There will be no grain markets Thursday evening and Friday.Trade is scheduled to resume on Sunday evening at 7 PM Chicago Time.
The corn market had a rough go today on weakness in the wheat and soybean markets. Ideas are that there are ample world supplies and that the recent adverse weather conditions will not hamper significant planting progress. Many folks believe the crop can get planted in two weeks-time and it is still April.
- Closes: May at $3.59, down 3 ¾ cents, July at $3.67 ¾, down 3 ¾ cents, and December at $3.87 ½, down 3 ¼ cents. The Red Dec closed at $4.15, down 1 ¼ cents. Consider making sales in the Red Dec at current levels.
- Spreads: K/N 8 ¾ carry, N/U 8 ¼ carry, U/Z 11 ¾ carry.
The soy complex got thumped on lack of fresh supportive news. Trade talks being positive and progressing well is doing very little to excite the market anymore. Early chatter about Chine looking to purchase another 2.5 mmt of US soybeans doesn’t seem to have materialized.
- Closes: May at $8.88, down 10 ¾ cents, July at $9.01 ¾, down 10 ¾ cents, and November at $9.21, down 10 cents. Products were weaker with meal down 4 ½ bucks and oil down 9 points.
- The canola market was weaker on technical selling and spillover weakness in the SU soy complex.
- Spreads: K/N 13 ¾ carry, N/Q 5 ½ carry, N/X 19 ¾ carry, X/F 10 carry.
The wheat market was definitely on the defensive with Mpls and KC making new contract lows and Chicago well off its highs for the day. The world is full of wheat and competition is fierce out there. There is not enough concern about late planting or reduced acres at this point to make the wheat market rally.
- May closes: Mpls at $5.27 ¼, down 4 ½ cents, KC at $4.17 ¾, down 9 ½ cents, Chicago at $4.45, down 14 ½ cents.
- Rain events this week for the US, Europe, Black Sea region pressured wheat prices as moisture would be beneficial to the crops.
- Spreads: Mpls K/N 3 ½ carry, U/Z 15 ¼ carry, Kansas City K/N 5 ¼ carry, and Chicago K/N 3 ½ carry.