Afternoon Market Highlights


Highlights

And the rally goes on in the corn market.  Soybeans and wheat tag along for the ride. The weather system this weekend and next week looks to be on target, bringing as much as 2-4” of rain in some parts of the Upper Midwest. Talk of prevent plant has entered into the picture if this rain should come as is forecast.  

  • The energy market is mostly higher with crude oil trading above $63/barrel.
  • The US$ is stronger, nearing 98 points and the gold market is trading over $10 lower.
  • Wall Street is mostly higher with the DJIA up 214 at 25862, S&P up 195 at 25872 and the NASDAQ up 75 at 7898. 

Corn

The corn market traded higher for the fourth day in a row, because of planting delays, from the cool wet weather conditions.  Three rain events are expected to move across the US Midwest. December 19 got within 2 ¼ of $4 and settled ¼ cent below its 200 Day MA of $3.96 ¾. 

  • Closes: July at $3.79, up 9 ½ cents, September at $3.87, up 8 ¾ cents and December at $3.96 ½, up 7 ¾ cents.
  • Weekly export sales came in at 634 tmt, in line with trade estimates.
  • Farmers are in the planters, racing the rain events forecast for the next 7-10 days.
  • Rumblings have begun about late planted, low yielding corn, along with slow germination from cool temperatures and how all that may impact the US corn balance sheet in future months.
  • Spreads: N/U 8 carry, U/Z 9 ¼ carry, Z/H 10 carry, Z/N 21 ¼ carry. 

Oilseeds

The soybean market traded higher on weather concerns and borrowed strength from the corn and wheat markets. Gains were limited from ample supplies of soybeans and lack of demand, with the absence of China purchases. Hearing that farmers are not looking at planting soybeans if the rains come as they are forecast and making it too late to plant corn.  There is more and more talk of prevent plant acres. 

  • Closes: July $8.39 ¾, up 4 ¼ cents, August at $8.46 ½, up 4 ½ cents and November at $8.64 ¾, up 5 cents.
  • Weekly export sales were reported at 674 tmt, in line with trade estimates.
  • Argentina’s soybean production was raised from 55.0 mmt to 560 mmt by the BA Grain Exchange. Big crops get bigger. World supplies are plentiful.
  • The canola market traded higher in sympathy with the US soy complex. Gains were limited from favorable weather conditions in Western Canada.Canola planting in Saskatchewan is said to be ahead of normal.
  • Spreads: N/Q 6 ½ cents, N/X 25 carry, Q/X 18 ½ carry, X/F 12 ¼ carry, X/N 42 ½ carry. 

Wheat

The wheat market traded higher on short covering from strength in the corn market.  Additional support came from concerns about possible damage to the winter wheat crop from expected rain showers over the next two weeks. 

  • July closes: Mpls $5.26 ¾, up 11 ½ cents, KC $4.19, up 17 cents, and Chicago $4.67, up 18 ¼ cents.
  • Weekly export sales ere reported at 534 tmt, neat the top end of trade estimates.
  • Kansas City basis firms on logistical pickles along the river system, with more rain expected to come over the next several days.
  • Spreads: Mpls N/U 9 carry, U/Z 12 carry, Kansas City N/U at 10 ¾ carry, N9/N0 77 ¾ carry, Chicago N/U 6 ½ carry.