Afternoon Market Highlights


Highlights

President Trump plans to provide farmers with another aid package of $15 billion, in an effort to help out US farmers that have been impacted from the ongoing US/Chinese trade war. This would come in addition to the $12 billion aid package last fall. 

  • CHS Hedging is offering Grain Hedging classes at the Inver Grove Heights office June 25th.Check out our website at www.chshedging.com for details and registration.
  • The energy markets are mostly lower with crude oil down 83 at $60.84/barrel.
  • The US$ is stronger, the gold market is stronger and the CD$ is slightly weaker.
  • Wall Street has a softer tone with the DJIA down 617 at 25324, the S&P down 81 at 2805 and the NASDAQ down 269 at 7647. 

Corn

Corn prices traded both sides today but managed to close in positive territory. Early losses stemmed from ample supplies hanging over the market. Prices drew support from spillover strength in the wheat market. Weekly export inspections were good. 

  • Closes: July at $3.56 ½, up 4 ¾ cents, September at $3.65 ¾, up 4 ¾ cents and December at $3.76 ½, up 4 ½ cents.
  • Weekly export inspections were reported at 1.0 mmt, near the top end of the trade estimates.
  • Planting progress was reported at 30% complete, compared to 23% last week and 66% on average.
  • The weather is expected to be favorable for planting in the WCB. The ECB is expected to stay wet and cool for much of this week.
  • Spreads: N/U 9 ¼ carry, U/Z 11 carry, Z/H 14 ¼ carry, Z/N 32 ¾ carry. 

Oilseeds

Soybean prices were on the defensive from increased tensions between the US and China. More tariffs got tossed at both parties.  Prices drew additional pressure from poor demand, big stocks and fears of increased soybean acres from ongoing delays in corn planting areas. 

  • Closes: July at $8.02 ½, down 6 ¾ cents, August at $8.09, down 6 ¾ cents and November at $8.27 ½, down 5 ¾ cents.
  • Weekly export inspections came in at 513 tmt, mid-range of the trade estimates.
  • The canola market traded lower on spillover weakness in the US soy complex.
  • Planting progress was reported at 9% complete, compared to 6% last week and 29% on average.
  • Spreads: N/Q 6 ½ carry, Q/X 18 ¼ carry, X/F 13 ¾ carry, X/N 50 ¼ carry.

Wheat

The wheat market traded lower at the open on plentiful supplies of wheat and improving winter wheat conditions. Prices turned higher midday with the emergence of bargain hunters after making new contract lows the past several days. Prices drew additional support from a decent weekly export inspection number. 

  • July closes: Mpls at $5.18, up 1 cent, KC at $3.95 ½, up 8 ½ cents, Chicago at $4.37, up 12 ¼ cents.
  • Weekly export inspections came in at 842k tonnes of wheat, the highest number seen in several months.
  • Spring wheat plantings came in at 45% complete, compared to 22% last week and 67% on average. ND was at 37%, MT at 55%, SD at 46% and MN at 35% complete.
  • Winter wheat conditions were reported at 64% G/E, unchanged from last week and well above last year at 36% G/E. 42% is headed out, versus 29% last week and 43% this time last year.
  • Spreads: Mpls N/U 8 ¾ carry, Kansas City N/U 10 ¾ carry and Chicago N/U 8 ¼ carry. 

Livestock

Hogs traded sharply lower today, and closed limit down in the June, August, and October contracts. There will be expanded limits of $4.50 per cwt tomorrow. The weakness in hogs is likely due to jitters regarding the U.S.-China trade talks. The carcass cutout values and bellies were stronger today as the cash values of pork remain strong. Both feeder and live cattle were lower today as well, as it is likely the funds have continued the liquidation of their large net long position in the live cattle. There are also concerns regarding the retaliatory tariffs from China, as U.S. beef will likely be on the list of tariffed goods.

  • Feeder closes: May at $134.925 down $2.70; August at $143.05 down $3.775; September at $144.25 down $3.525.
  • Live closes: June at $109.70 down .75; August at 106.85 down 2.05; October at 106.85 down 2.175.
  • Lean hog closes: June at $86.675 down $3.00; July at $87.85 down $2.90; August at $89.65 down $3.00.
  • Packer margins were estimated at $98.05 for beef and $2.00 for pork.
  • Today’s slaughter was estimated at 121,000 cattle vs 117,000 last year and 461,000 hogs vs 455,000 last year.
  • Afternoon pork product values on 194 loads: carcass cutout at $88.24 up $2.08; loins at $80.61 up $0.48; ribs at $165.19 up $3.62; hams at $72.43 up $5.00; bellies at $132.14 up $2.21.