Afternoon Market Highlights


Highlights

  • The energy markets were mostly higher with crude oil up 35 at $62.13/barrel.
  • The US$ stays strong, the gold market is slightly firmer and the CD$ is mostly steady.
  • Wall Street is firmer with the DJIA up 115 at 25648, S&P up 110 at 25683 and the NASDAQ up 87 at 7822.
  • The USDA announced that they have paid 8.52 billion dollars in direct payments to U.S. farmers through the 2018 aid programs that were implemented to help counteract losses from the U.S. China trade deal. 

Corn

The corn market opened higher on planting worries and fund short covering.  Prices retreated on increased hedge pressure, as farmers took advantage of the rally. Weather worries continue for this weekend and into next week.  There is a 3-cent gap in the July corn from 3.60 ¼ to $3.57 ¼. 

  • Closes: July $3.69 ½, up ¾ cent, September at $3.78 ¼, up 1 cent and December at $3.88 ¾, up 1 cent.
  • Weekly ethanol production increased by 15,000 bpd to 1,051,000 bpd. Ethanol inventories were down 0.2 million barrels at 22.3 million barrels.
  • Average trade estimates for weekly export sales are 300-900 tmt.
  • Planters were rocking and rolling across the Upper Midwest, trying to get as much done as possible ahead of this week and weekend’s rain event.
  • Spreads: 8 ¾ carry, U/Z 10 ½ carry, Z/H 11 ¾ carry, Z/N 24 ¾ carry.

 Oilseeds

The soybean market traded higher on spillover strength in the corn market and concerns of planting delays. Gains were trimmed back on uncertainty about shifting corn acres to bean acres and late weakness in the corn market. 

  • Closes: July at $8.35 ½, up 4 cents, August at $8.42, up 4 cents and November at $8.59 ¾, up 3 ¼ cents. The products were higher with meal up 1-2 bucks and oil up 24 points.
  • NOPA’s April crush was 159.990 million bushels, below the trade expectations of 161.607 million bushels. Soyoil stocks rose to 1.787 billion pounds, above last month’s 1.761 billion pounds. Soymeal exports were at 763,203 tons, below last month’s 844,294 tons.
  • Average trade estimates for tomorrow’s weekly export sales: 300-900 tmt for beans, 125-400 tmt for meal, and 5-25 tmt for soyoil.
  • Spreads: N/Q 6 ½ carry, N/X 24 ¼ carry, Q/X 17 ¾ carry, X/F 12 ½ carry, X/N 44 ¼ carry. 

Wheat

The wheat market followed corn prices higher early in the session and followed corn prices lower at the close.  World supplies of wheat are plentiful, and the crop is getting planted in many areas, ahead of the rain showers forecast for this weekend and next week. 

  • July closes: Mpls at $5.15 ¼, down 8 cents, KC at $4.02 ½, down 6 ¼ cents, Chicago at $4.48 ¾, up ¾ cents.
  • Weekly export sales are estimated at 0 to 250,000 tonnes of new crop and 150,000 to 350,000 tonnes of new crop.
  • Australia bought Canadian wheat, a first in over 10 years. Canadian wheat planting is underway with favorable weather conditions for the start of the growing season.
  • Spreads: Mpls N/U 9 ½ carry, Kansas City N/U 11 carry, and Chicago N/U 7 ¼ carry. 

Livestock

Livestock prices were mixed with the feeder cattle market on the defensive from continued strength in the corn market. Live cattle traded slightly higher on light buying interest, despite weaker cash markets. The hog market continues to garner support from longer term demand because of the continued situation with the African Swine Fever. 

  • Feeder closes: August at $142.27, down 55 cents and October at $143.90, down 57 cents.
  • Live closes: June at $109.67, up 2 cents, and October at $106.75, up 15 cents.
  • Lean hog closes: June at $91.82, up 2.75 and October at $84.30, up 85 cents.
  • The Fed Cattle Exchange had 376 head offered, with 280 selling for an average weighted price of $117.00. The cattle came from Kansas and Oklahoma.
  • Packer margins were estimated at $101.50 for beef and $3.20 for pork.