Afternoon Market Highlights


Highlights

The grain markets were lower today on ample supplies, and lack of fresh supportive news.  US beef has been recalled after a possible detection of E coli in a Georgia meat packing plant. Trade talks are scheduled to take place in China next week. The US$ was stronger and Wall Street was weaker. 

  • The annual Wheat Quality Council’s HRW tour begins next week. CHS Hedging will have a scout on the tour and will be reporting on what they find in the fields of Kansas.
  • Lost bushels from spring flooding is not expected to be addressed until the June 1 Grain Stocks report, which is scheduled for June 28th at 11 CDT.
  • May options expire at the close on Friday, April 26th.
  • First Notice Day for May futures is April 30th with all long positions reported after the close on April 29th.
  • CHS Hedging is offering Energy and Grain Hedging classes at the Inver Grove Heights office in LH June.Check out our website at www.chshedging.com for details and to registration. 

Corn

The corn market traded lower on plentiful supplies and export concerns.  Hopes of decent export business are growing dim with big South American and Ukrainian crops being harvested. Spring planting has begun with more planters rolling every day.  Ideas are that the corn will most likely get in the ground. 

  • Closes: May at $3.46 ¾, down 4 ½ cents, July at $3.56, down 4 ¼ cents and December at $3.76, down 3 ¾ cents.
  • Weekly ethanol production increased 32k barrels per day to 1.048 million barrels per day. Stocks were unchanged at 22.7 million barrels.
  • Weekly export sales estimate is at 600 tmt-1.1 mmt.
  • Spreads: K/N 9 ¼ carry, N/U 8 ¼ carry, U/Z 11 ¾ carry, Z/H 15 ¼ carry, Z9/N0 31 carry. 

 

 Oilseeds

The soybean market traded lower in sympathy with the wheat and corn markets. The May contract fell below last July’s $8.55 ½ low and got within a1 ½ cent of its contract low of $8.53, that was made back in September. 

  • Closes: May at $8.55 ¼, down 6 ¾ cents, July at $8.68 ¾, down 6 ¾ cents, and November at $8.89 ½, down 6 ¾ cents. The products were also weaker.
  • The canola market traded higher on a lower than expected canola planted acreage no. StatsCan pegged their 2019 canola acreage at 21.3 million acres. This compares to 22.839 million acres planted in 2018.
  • Weekly export sales estimates: 300-750 tmt for beans, 125-325 tmt for meal and 5-30 tmt for soyoil.
  • Spreads: K/N 13 ¼ carry, N/X 20 ¾ carry, X9/N0 36 ¼ carry. 

Wheat

The wheat market fell apart on ample global supplies of wheat and favorable weather conditions around the globe. Prices drew additional pressure from a 2.0 million acre increase in Canadian spring wheat this year and strength in the US$. 

  • May closes: Mpls at $5.03, down 8 cents with a contract low of $5, KC at $4.04, down 10 ½ cents with a contract low of $4.03 ½, and Chicago at $4.32 ¼, down 6 ½ cents and 5 ¼ cents above its contract low of $4.27.
  • StatsCan pegged their 2019 wheat seedings at 25.7 million (19.4 million of that is slated for spring wheat).
  • The average weekly export sales estimate is at 300-750 tmt.
  • Favorable weather conditions for the Black Sea region leaves thoughts of another bumper crop for Ukraine and Russia.
  • Spreads: Mpls K/N 8 ½ carry, U/Z 15 ½ carry, Kansas City K/N 7 carry, N9/N0 78 ¾ carry.

Livestock

The livestock market was mixed with cattle on the defensive and hogs trading higher. The feeder and live cattle markets were lower as the managed money crowd sells cattle and buys hogs. The grilling season has just begun and there may be opportunities down the road to see a rise in prices. 

  • Closes: May Feeders at $146.52, down 3.25, June lives at $118.35, down 2.57 and May hogs at $89.17, up 1.17.
  • Packer margins were reported at $140.70 for beef, $7.70 for pork.
  • AM Pork Product values on 140 loads: Carcass cutouts at $89.79, up 87 cents, loins at $75.06, down 1.42, ribs at $158.90, up 1.38, hams at $72.16, up 2.15 and bellies at $158.51, up 1.47.
  • AM Boxed Beef values on 93 loads: Choice at $233.71, down 40 cents, Selects at $221.12, down 14 cents. The C/S spreads was last at 12.59.
  • Today’s slaughter is estimated at 121k head for cattle and 477k head for hogs.