Afternoon Market Highlights


Highlights

  • Beyond Meat, a vegan meat substitute, launched an IPO today that traded as high as $72.85. The IPO was originally forecast to trade between $23 and $25 per share.
  • CHS Hedging is offering grain hedging classes on June 25th and Energy Risk Management classes on June 19th. For more information visit www.chshedging.com.
  • Last trading day for May live cattle options is on Friday, May 3rd.

 Corn

The corn market traded both sides of the board today, before closing mixed. The nearby contracts were higher, and the deferred lower. Much of the Midwest is still experiencing below normal temps and above normal precipitation, which could reflect in further planting delays on Monday’s crop progress report. The export sales reported this morning were weak, which limited upside potential.

  • Weekly export sales were 586,500 mt, which was below the estimates of 600,000 – 1,000,000 mt.
  • The Buenos Aires Grain Exchange raised their Argentine corn crop estimate from 46 million tones to 48 million tonnes.
  • Closes: July at $3.70 ½ up 2; September at $3.77 ¾ up 1 ½; December at $3.77 ¾ up 1 ½; March at $3.99 ¼ down ¾.
  • Spreads: K/N 8 ¼ cent carry; N/U 7 cent carry; U/Z 9 ½ cent carry; N/Z 16 ½ cent carry.

 Oilseeds

Soybeans were lower today as the export sales reported this morning were well below the expectations. There is still no trade deal with China in place, and some reports have stated that we are now approaching the point of deal or no deal. This adds pressure to the large carryout held by the U.S. Soybean futures have continued to put in new contract lows.

  • Weekly export sales were 313,400 mt of soybeans, below the estimates of 400,000 to 800,000 mt; soy meal exports were 79,200 mt, below the estimates of 150,000 to 375,000 mt; soyoil exports were 7,200, at the bottom end of estimates ranging from 7,000 to 30,000 mt.
  • Products were lower today, with July soy meal closing at $296.90 down 3.40 and Soyoil closing at 27.50 down 0.15.
  • Closes: July at $8.43 ¼ down 8 ½; August at $8.49 ½ down 8 ½; September at $8.54 ¾ down 8 ½; November at $8.65 down 8.
  • Spreads: K/N 12 ¾ cent carry; N/Q 6 cent carry; Q/X 15 ½ cent carry; N/X 21 ½ cent carry.

 Wheat

The wheat markets were higher across the board today as they continued to bounce off contract lows. The strength in wheat was largely due to short covering. The export sales were below expectations, and the wheat tour is predicting a large crop in Kansas. July Chicago wheat closed above its 10-day moving average of $4.40 and July Minneapolis wheat closed above it’s 10-day moving average of $5.15. July Kansas City wheat closed below it’s 10-day moving average of $4.09.

  • Weekly export sales were 122,000 mt, below the estimates of 200,000 to 400,000 mt.
  • The Wheat Quality Council tour concluded today, and they estimated the wheat yield in Kansas to be 47.2 bushels per acre, above the five-year average of 40.2 bushels per acre. The tour predicts that Kansas will produce 306.5 million bushels of wheat.
  • July closes: Chicago at $4.44 up 8; Kansas City at $4.04 ¾ up 4 ¾; Minneapolis at $5.20 ¾ up 8 ¾.
  • Spreads: Chicago N/U 7 ½ cent carry; Kansas City N/U 11 ¼ cent carry; Minneapolis N/U 8 ¼ cent carry.

 Livestock

The cattle markets traded lower today, in both feeders and live. The live cattle broke through their support levels, with June live cattle putting in a new 5 month low. May feeder cattle put in a fresh contract low. Hogs were mixed today as there was likely paper trading occurring. The carcass cutout values have remained around the same level. May hogs closed below their 10-day moving average of $87.35.

  • Weekly export sales were 10,600 mt for beef and 16,100 for pork.
  • Feeder closes: May at $138.975 down 2.375; August at $147.90 down 1.275; September at $148.50 down 1.675.
  • Live closes: June at 113.675 down 0.10; August at 110.175 down 0.80; October at 110.675 down 1.10.
  • Lean hog closes: May at $86.10 down 0.85; June at $92.75 up 1.475; July at $95.525 up 0.10.
  • Afternoon boxed beef values on 153 loads: Choice at $228.80 down 1.42; Selects at $215.08 down 2.42.
  • Afternoon pork product values on 216 loads: carcass cutouts at 83.92 up 1.93; loins at 77.61 up 3.25; ribs at 163.73 up 6.03; hams at 67.28 down 1.25; bellies at 120.95 up 7.06.
  • Today’s slaughter was estimated at 122,000 cattle versus 121,000 last year and 474,000 hogs versus 460,000 last year.