Afternoon Market Highlights


Highlights

The annual Wheat Quality Council’s HRW tour begins today. 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.
  • China cancels more canola cargoes from Canada.Canadian soybean shipments to China were said to be dwindling as well.The rift between China and Canada appears to be heating up.
  • The energy markets were mostly higher with crude oil up 30 at $63.64/barrel.
  • The US$ and gold markets are weaker.The DJIA, S&P and NASDAQ are stronger. 

Corn

The corn market drew support from recent rain events and forecasts for more rains across the Upper Midwest this week.  Temperatures are expected to be cool.  Ideas are that there is ample time to get the crop planted. Gains were limited from spillover weakness in the wheat market, despite a decent export inspections number. 

  • Closes: July at $3.61 ¾, up ½ cent, September at $3.70, up ½ cent and December at $3.81 ¼, up ½ cent.
  • Weekly export inspections were 1.4 mmt, above trade estimates of 850 tmt -1.3 mmt.
  • Planting progress through this past Sunday is estimated at 14% complete.
  • Spreads: N/U unchanged at an 8 ¼-cent carry, U/Z 11 carry, Z/H 14 ¾ carry, Z/N 30 ¾ carry. 

Oilseeds

The Soybean market was on the defensive from ideas there could be a significant switch from corn to beans should the rains across much of the Upper Midwest continue for the next couple of weeks. Losses remain limited as the near record short fund position leaves the market vulnerable to short covering rallies.  

  • Closes: July at $8.60 ¾, down 6 ¼ cents, August at $8.66 ¾, down 6 ½ cents and November at $8.80 ¾, down 7 cents. The products were mixed with meal down 2-3 bucks and oil up 36 points.
  • Weekly export inspections were reported at 492 tmt, in line with trade estimates (350-550 tmt).
  • Planting progress is seen at 4% complete. Actual numbers will be released around 3 PM CDT today.
  • China was said to have canceled as many as 10 cargoes of canola. The rift between China and Canada seems to be growing.
  • The Brazilian farmer is thought to have sold 50% of their new crop soybeans.They are also to end up having another record soybean crop.
  • Spreads; N/Q 6 carry, N/X 20 carry, X/F 10 ¼ carry, X/H 18 ½ carry, X/N 36 carry. 

Wheat

The wheat market slumps on favorable weather conditions in the US winter wheat area, Russia and the European Union.  Global supplies are plentiful, and the winter wheat crop conditions are expected to improve.  Long futures positions needed to get rolled or sold by the close today. There was also a fair amount of basis contracts that also needed to get priced out or rolled out to the deferred months today. 

  • July closes: Mpls at $5.07 ½, down 4 ¼ cents, KC at $3.96 ¼, down 11 ¼ cents, Chicago at $4.35 ¼, down 7 ¼ cents.
  • All three wheat markets made new contract lows today.
  • Weekly export inspections came in at 630 tmt, mid-range of trade estimates (400-850 tmt).
  • Algeria bought 200k tonnes of durum for June shipment at $268-$270/ tonne C&F.The durum was thought to be sourced from Canada.
  • Saudi Arabia bought 620k tonnes of wheat at an average price of $233.72/tonne for July-Sep delivery.The wheat was thought to be sourced mostly from Europe with possibly 5-6 cargoes to come from the US.
  • Australian wheat planting has begun amidst mostly dry soil conditions (for the third consecutive year).
  • Matiff wheat prices were weaker, in sympathy with the weakness in the US wheat market. Losses were limited from a softer Euro.
  • Spring wheat plantings are expected to be near 12-15% complete. MN, ND and SD all had a good week of planting last week.
  • Spreads: Mpls K/N 16 ¾ carry (widened out 3 cents today), N/U 9 ¾ carry, Kansas City N/U widened out a penny to an 11 ½-cent carry, Chicago N/U 8 ½ carry.