Afternoon Market Highlights
5/7/2019 4:04:36 PM
- The USDA’s WASDE report will be released on Friday, May 10th.
- Energies were mostly lower today, with June crude settling at 61.40 down 0.81.
- 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 traded higher today following yesterday’s losses. The corn markets strength was likely due to the below average corn planting on yesterday’s crop progress report. Wet weather continues to be in the forecast, but there is a window of dry weather on its way.
- Canadian corn stocks were reported at 8.302 mmt by StatsCan, below last March’s stocks of 8.754 mmt.
- A Reuters poll sees the average estimate for the WASDE to be 316.00 mmt for global old crop corn, which is above the April stocks number of 314.01 mmt.
- Closes: July at $3.66 ½ up 2 ¼; September at $3.74 up 2 ¼; December at $3.83 ¾ up 1 ½.
- Spreads: N/U 7 ½ cent carry; U/Z 9 ¾ cent carry; N/Z 17 ¼ cent carry; Z/H 12 ½ cent carry.
Soybeans were mixed today, with the front months higher and the deferred unchanged to lower. The soybean market recovery today may have been tied to news that the Vice Premier Liu He will still travel to Washington on Thursday and Friday for the trade talks. The market still appears to be watching the situation closely.
- Canadian canola stocks were reported at 10.019 mmt by StatsCan, above last March’s stocks of 9.063 mmt. Canadian soybean stocks were at 2.913 mmt, which is above last Marchs 2.794 mmt.
- A Reuters poll sees the average global estimate for the WASDE to be 108.50 mmt, above the April stocks number of 107.36 mmt.
- Closes: July at $8.30 ¾ up ½; August at $8.37 up ½; September at $8.42 ½ up ¼; November at $8.53 unchanged.
- Spreads: N/Q 6 ¼ cent carry; Q/X 15 ¾ cent carry; N/X 22 ¼ cent carry; X/F 11 ¼ cent carry.
The wheat markets were mixed today, but generally higher. Minneapolis was the winner today, followed by Chicago and the Kansas City. As cool weather is expected in Kansas, there could be less protein in the Kansas City and Chicago wheat crop. This helped to aid Minneapolis prices, since that is the higher protein wheat.
- StatsCan placed the Canadian wheat stocks at 15.694 mmt, below last March’s stocks of 16.394 mmt.
- A Reuters poll sees the average global estimate for the WASDE to be 275.89 mmt, slightly above the April stocks number of 275.61 mmt.
- Jordan purchased 60,000 tonnes of hard milling wheat for shipment in the second half of September at $213 per tonne.
- Philippine importers tendered for 55,000 tonnes of feed wheat in a tender that closed today. This follows a reported purchase of 50,000 tonnes of feed wheat for summer shipment with a price near $200 per tonne.
- Japan tendered for 110,880 tonnes of food quality wheat, with U.S. wheat in the mix for just over 32,000 tonnes. The tender closes Thursday.
- July Closes: Chicago at $4.39 ½ up 2 ¼; Kansas City at $4.04 ½ up 1 ½; Minneapolis at $5.21 ¼ up 7 ½.
- Spreads: Chicago N/U 8 ¼ cent carry; Kansas City N/U 10 ¾ cent carry; Minneapolis N/U 8 ¼ cent carry.
The hog market had a wild day today, trading both sides of the board before closing mixed. The wildly trading hog market is still faced with ASF concerns and is also worried about the U.S. China trade deal. The June contract had a trading range of $5.975, with a high of $91.35 and a low of $85.375. The carcass cutout values were strong this afternoon as well. Both feeder and live cattle appear to have put a bottom in, as futures prices have started to trade higher. Cash trade was lower today in Kansas at 119-120, and boxed beef values were off this afternoon.
- Feeder closes: May at $137.30 up $1.50; August at $145.60 up $1.30; September at $146.475 up $1.025.
- Live closes: June at $112.275 up $0.125; August at $109.075 up $0.60; October at $109.45 up $0.50.
- Lean hog closes: May at $83.05 up $0.475; June at $89.25 down $1.275; July at $92.125 down $1.45.
- Packer margins were estimated at 120.35 for beef and negative 3.10 for pork.
- Today’s slaughter was estimated at 121,00 cattle vs 120,000 last year and 472,000 hogs vs 463,000 last year.
- Afternoon pork product values on 282 loads: carcass cutouts at $86.67 up $2.78; loins at $78.64 up $2.21; ribs at $162.80 up $6.90; hams at $72.35 up $2.96; bellies at $121.34 up $5.48.
- Afternoon boxed beef values on 168 loads: Choice at $223.87 down $3.13; Selects at $211.83 down $2.15.