Afternoon Market Highlights


Highlights

  • The Chinese delegation is still expected to come to Washington on Wednesday, May 8th for the planned trade talks, despite the inflammatory Trump Tweets from Sunday.
  • The USDA WASDE report will be released at 11:00 CT on Friday, May 10th.
  • CHS Hedging has a variety of classes available in June including Energy risk management, Grain hedging I and II, and Technical trading. For more information please visit www.chshedging.com.

 Corn

Corn traded lower today due to the threats of increased tariffs on China. Corn did come back from the day’s lows and refrained from making fresh contract lows. The July contract closed above its 10-day moving average of $3.36 ¼.

  • U.S. corn planting is seen at 23%, below the 5-year average of 46%. Last week’s planting was 15%. Corn emerged was 6%, below the 5-year average of 13%.
  • Export inspections were 976,842 mt, which was within the estimates of 700,000 to 1,200,000 mt. Last week’s revised inspections were 1,366,477 mt.
  • Closes: July at $3.64 ¼ down 6 ½; September at $3.71 ¾ down 6; December at $3.82 ¼ down 5 ½.
  • Spreads: N/U 7 ½ cent carry; U/Z 10 ½ cent carry; N/Z 17 ¾ cent carry; Z/H 13 cent carry.

 Oilseeds

The soybean market traded lower today in response to Tweets from President Trump on Sunday. July soybeans had traded as low as $8.16 ¾ before coming back and closing at $8.30 1/4. The July contract has an RSI of 16.9% and closed 25 ¾ cents below the 10-day moving average.

  • U.S. soybean planting is seen at 6% versus the 5-year average of 14%. Last week’s planting was 3%.
  • Soybean export inspections were 600,441, which was just above the estimates of 400,000 to 600,000 mt. Last week’s revised inspections were 507,285 mt.
  • July soy meal closed at $296.80 down 1.80 and July soyoil closed at 27.13 down 0.22.
  • Closes: July at $8.30 ¼ down 12; August at $8.36 ½ down 12; September at $8.42 ¼ down 11 ¾; November at $8.53 down 11 ¼.
  • Spreads: N/Q 6 ½ cent carry; Q/X 16 ¼ cent carry; N/X 22 ¾ cent carry; X/F 11 ½ cent carry.

 Wheat

The wheat markets were mixed today, with Kansas City mostly higher and Minneapolis and Chicago mostly lower. The wheat markets were lower this morning but managed to rebound through the course of the day. July Minneapolis closed above its 10-day moving average of $5.13 ¼, July Chicago closed below its 10-day moving average of $4.38 ½, and July Kansas City closed below its 10-day moving average of $4.05.

  • U.S. spring wheat planting was seen at 22%, below the 5-year average of 49%. Last weeks planting was 13%.
  • U.S. winter wheat condition is 64% good/excellent vs 34% last year. The crop is 29% headed, below the 5-year average of 41%.
  • Export inspections were 477,918, which was within the estimates of 400,000 to 800,000. Last week’s revised inspections were 645,662 mt.
  • It was reported today that the U.S. sold 75,000 tonnes of wheat to South Korea on Thursday.
  • July closes: Chicago at $4.37 ¼ down ¾; Kansas City at $3.94 up 1; Minneapolis at $5.15 down ¾.
  • Spreads: Chicago N/U 8 cent carry; Kansas City N/U 10 ¾ cent carry; Minneapolis 8 cent carry.

 Livestock

The livestock markets were mostly lower today, with hogs leading the way down. Many of the lean hog contracts closed limit down and will have expanded limits of $4.50 tomorrow. June hogs opened limit down and remained there for the day. The weakness in hogs was likely due to the Trump Tweets on Sunday. The cattle market followed the hogs lower today, with both live and feeder cattle closing lower. May feeder cattle have an RSI of 19.2%, and June lives have an RSI of 22.4%.

  • Feeder closes: May at $136.025 down $0.925; August at $144.35 down $1.90; September at $145.55 down $1.425.
  • Live closes: June at $112.275 down $1.00; August at $108.40 down $0.55; October at $108.875 down $0.70.
  • Lean hog closes: $82.375 down $2.975; June at $89.75 down $3.00; July at $92.675 down $3.00.
  • Packer margins were estimated at $118.00 for beef and negative $5.00 for pork.
  • Todays slaughter was estimated at 119,000 cattle vs 118,000 last year and 470,000 hogs vs 447,000 last year.
  • Afternoon pork product values on 217 loads: carcass cutouts at $82.89 up $0.88; loins at $76.43 down $0.87; ribs at $155.90 down $0.82; hams at $69.39 up $1.85; bellies at $115.86 up $2.38.
  • Boxed beef values on 99 loads: Choice at $227.00 down $0.36; Selects at $213.98 up $0.69.