Afternoon Market Highlights


Highlights

The Ag markets were mixed with corn strength coming from adverse weather across much of the US Midwest and weakness in the soy complex on ideas of increased acres.  The wheat market was on the defensive from technical selling and a late round of profit taking after recent rallies.  

  • President Trump considers aid to farmers hurt by the ongoing trade spat with China. The suggested aid would amount to payments of $2 for soybeans, 63 cents for wheat and 4 cents for corn.
  • The energy markets were mixed with crude oil dipping below $63/barrel.
  • The US$ finished slightly higher at 98 points, the gold market was 2-3 bucks lower at 1274 and the CD$ was up slightly at 0.7465.
  • Wall Street was stronger with the DJIA up 197 at 25877, S&P up 20 at 2866 and NASDAQ up 83 at 7785. 

Corn

Corn prices traded higher on slow planting progress, poor weather conditions for this and next week and fund short covering. More rain events and cold weather conditions are forecast for this and next week. 

  • Closes: July at $3.94 ¼, up 5 ¼ cents, September at $402 ¾, up 6 cents, December at $4.10 ½, up 6 cents.
  • Assessments of lowering corn yields begin with this week’s planting progress coming in less than 50% complete late in May.
  • Spreads: N/U 8 ½ carry, U/Z 7 ½ carry, 

Oilseeds

The soybean market traded higher at the open on slower than expected planting progress and strength in corn.  Prices turned lower midday from reports there could be additional aid to US farmers from low soybean prices. 

  • Closes: $8.22, down 9 ¾ cents, August at $8.28 ¾, down 9 ¾ cents, November at $8.48 ½, down 9 ¼ cents.
  • The Trump aid was viewed negatively with ideas that it could encourage more soybean plantings at a time when supplies are plentiful, and demand is not the greatest.
  • Spreads: N/Q 6 ½ carry, N/X 26 ½ carry, Q/X 19 ½ carry, X/F 11 ¾ carry, X/N 41 ¾ carry.  

Wheat

The wheat market traded higher on crop quality concerns in the winter wheat and slowed plantings in the spring wheat. Gains were limited from improving winter wheat conditions this week. Prices turned lower by the close on a late round of profit taking and technical selling. 

  • July closes: Mpls at $5.43, down ½ cent, KC at $4.33, down 1 ½ cents, Chicago at $4.78 ½, up ½ cent.
  • The July contract touched above its 100-Day MA of $5.54 but failed to hold at or above that level.
  • Spreads: Mpls N/U 9 carry, U/Z 11 ½ carry, Kansas City N/U 10 carry, U/Z 20 ½ carry and N/N 68 ¼ carry.