Afternoon Market Highlights


Highlights

Planters get rolling and grain prices keep falling. More rain is forecast for much of the US over the next several days. Corn planting could see delays in some areas, although there is no real concern about not getting the crops planted at this juncture.  The energy markets are mostly weaker with crude oil down almost a buck at $64.98. The US$ traded both sides but stays strong, trading over 98 points. Wall Street is on the defensive with the DJIA down 89 at 26,507, and the S&P down 2 at 2928. 

  • 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. Follow us on Twitter at @hedgeit.
  • 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 registration. 

Corn

The corn market opened lower on planting progress and ample supplies of corn.  Prices moved slightly higher midday on forecasts for more rain events across the US Midwest over the next 10-15 days. The May dipped down to a low of $3.42 ¼, a level not seen since last September. 

  • Closes: May at $3.47 ½, up ¾ cent, July at $3.57 ¼, up 1 ¼ cents, December at $3.77, up 1 ¼ cents.
  • IGC estimates world corn production at 1.125 billion tonnes, up 1.0 million tonnes from their previous estimate.
  • Weekly export sales of 783 tmt, were in line with trade estimates between 600 tmt and 1.1 mmt.
  • Spreads: K/N 9 ¾ carry, N/U 8 ¼ carry, U/Z 11 ¾ carry, Z/H 15 ¼ carry, Z9/N0 31 ¾ carry. 

Oilseeds

The soybean market turned higher as bargain hunters emerged.  Soybeans have been beat up the past several days and were thought to be due for a bounce.  The soymeal market broke through support at $300/ton but failed to hold at the weaker levels. 

  • Closes: May at $8.59 ¼, up 4 cents, July at $8.72 ¾, up 4 cents, November at $8.93 ¼, up 3 ¾ cents. The products were mixed with meal up 5-6 bucks and oil down 28 points.
  • The Buenos Aires Grain Exchange pegs the Argentine soybean production at 55.0 mmt with harvest over 50% complete.
  • The canola market traded higher on leftover fumes from the StatsCan lower canola planting number. Prices drew additional support form dryness in southern Saskatchewan and Alberta, along with a bout of short covering.
  • Spreads: K/N 13 ½ carry, N/X 20 ¾ carry, X/F 10 ½ carry, X9/N0 36 ¼ carry. 

Wheat

The wheat market bounced slightly higher on technicals. Mpls drew underlying support from talk of rain events across the Northern Plains over the weekend and possibly next week. Temperatures are expected to be on the cooler side. Gains were limited from ample world supplies of wheat. The KC May tickled the $4 mark but did not trade below it. 

  • May closes: Mpls at $5.05, up 1 ¾ cents, KC at $4.04, down ½ cent and Chicago at $4.34 ¾, up 2 ½ cents.
  • Weekly export sales of 652 tmt were inline with trade estimates between 300-750 tmt.There is a little over one month left in the current marketing year.
  • Spring wheat is getting planted in Montana, South Dakota and North Dakota this week.
  • Spreads: Mpls K/N 8 ½ carry, N/U 9 ½ carry, Kansas City K/N 7 carry, N/U 9 ¾ carry, U/Z 21 carry. 

 Livestock 

The livestock market took it in the shorts on fund selling. Cash cattle markets traded below expectations. Cattle should garner support in the next weeks as participants look to get coverage for the summer grilling season. Lean hogs were on the defensive from overbought ideas and a bit of disappointment in the weekly export sales numbers. The lean hog market will see expanded trading limits of $4.50 tomorrow as June through Feb all closed down their daily limit. 

  • Closes: May feeders at $143.55, down 2.95, October feeders at $154.90, down 3.275, April lives at $124.05, down 2.37, June lives at $115.37, down 2.95, May hogs at $87.85, down 1.40 and June hogs at $89.77, down 3 bucks (the daily trading limit).
  • Packer margins were reported at $128.75 for beef, $3.05 for pork.
  • AM Pork Product values on 128 loads: Carcass cutouts at $90.49, up 70 cents, loins at $76.47, up 1.41, ribs at $159.47, up 57 cents, hams at $65.21, down 6.95 and bellies at $167.92, up 9.41.
  • Cash hog values sit around $79.50 in the ECB, $81.26 in the WCB and $81.73 in IA/MN.
  • AM Boxed Beef values on 117 loads: Choice at $233.59, down 12 cents, Selects at $220.49, down 63 cents. The C/S spreads was last at 13.10.
  • Cash cattle prices sit around the $126/$127 on a live basis.
  • Today’s slaughter is estimated at 121k head for cattle and 477k head for hogs.