Afternoon Market Highlights


Highlights

The annual Wheat Quality Council’s HRW tour began 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. 

  • New daily price limits will take effect tomorrow. The only change I saw was in soybeans where the daily limit goes from 60 cents to 65 cents and the expanded daily limit goes from 90 cents to $1.00.
  • 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.
  • The energy markets were mostly higher with crude oil trading just below $64/barrel.
  • The US is looking at making a quick trade deal with Japan (that would address Ag products) rather than a more comprehensive agreement.
  • Wall Street is trading higher with the DJIA up 52 at 26,601 and S&P up 32 at 26,600. 

Corn

Corn prices were lower in sympathy with wheat and soybeans. Losses were limited from concerns of planting delays. Corn plantings were reported at 15% complete versus 27% on average. While delays are not a super big deal this week, they could be if corn plantings continue to be slow over the next couple of weeks.  

  • Closes: July at $3.62 ½, up ¾ cent, September at $3.70 ½, up ½ cents and December at $3.81, down ¼ cent.
  • Next week’s average is at 46% complete (May 5th) and the next week after that is at 66% complete (May 12th).
  • Spreads: N/U 8 carry, U/Z 10 ¾ carry, Z/N 30 ¾ carry. 

Oilseeds

Soybeans prices saw pressured from ample supplies of beans, with big SA crops and poor export demand for US soybeans. Weakness in corn and wheat added additional pressure to the soybean market, as well as the possibility of seeing a shift from corn to beans if wet weather conditions persist. 

  • Closes: July at $8.54, down 6 ¼ cents, August at $8.60, down 6 ¾ cents, and November at $8.74 ¾, down 6 cents.
  • May through September beans made new contract lows.
  • Soymeal was weaker, making new contract lows from May through October. The deferred months hover slightly above the $300/ton mark.
  • The canola market traded lower in sympathy with the US soybean complex. Additional pressure came from a potential trade war between Canada and China.
  • China has rejected canola from two Canadian companies.China has also nearly eliminated their purchases of Canadian soybeans, peas and pork.
  • Spreads: Canola N/X at 14 carry, 69% of full carry at 20.26, N/Q beans at 6 ¼ carry 71% of full carry at 8 ½ carry. 

Wheat

The wheat market made new contract lows in all three classes. Deliveries were big in both Chicago and Mpls, while KC saw zero deliveries posted against the May contract. Prices were pressured from improving winter wheat conditions and favorable numbers from Day 1 of the HRW tour. 

  • July closes: Mpls at $5.07, down ½ cent, KC at $3.94 ¾, down 2 ¼ cents and Chicago at $4.28 ¾, down 6 ½ cents.
  • Day 1 of the HRW tour reported yields from 26.9 bpa to 56.0 bpa.Some dry areas with little disease noted.
  • Spreads; Mpls N/U 9 ¼ carry, Kansas City N/U 11 ¾ carry, Chicago N/U 8 ¾ carry. Mpls gained on KC and Chicago with Mpls July at a $1.13 premium over KC July and a 79 cent premium over Chicago July.