Afternoon Market Highlights
5/22/2019 4:09:36 PM
The grain markets were quiet with corn taking a break from recent moves higher. The soybean market traded higher on bargain hunting and the wheat market traded lower on followthrough profit taking from yesterday. The USDA is expected to release clarification on the 2nd round of Trump aid to farmers, later this week. Trade talks with China seem to be on the back burner as much of the trade is focused on weather and planting progress.
- Energy markets are mostly weaker with crude oil trading below $62/barrel in the July contract.
- The US$ traded both sides and is fairly stable at 98 points.
- Wall Street is weaker across the board with the DJIA down 100 at 25776, S&P down 9 at 2857 and the NASDAQ down 38 at 7750.
The corn market set back a bit today, after several sessions of higher prices, from a round of profit taking ahead of the long Memorial Day Holiday weekend. Prices closed well off their lows for the day on commercial and fund buying. Planting progress was seriously delayed this week from cool, wet weather conditions across much of the Upper Midwest.
- Closes: July at $3.94 ½, up ¼ cent, September at $4.03 ¾, up 1 cent and December at $4.12 ¾, up 2 ¼ cents.
- Average trade estimate for weekly exports sales: 250 tmt-1.05 mmt.
- Planting progress for Monday is estimated around 62% complete. This past week was at 49% complete.
- Weekly ethanol production was reported at 1.071 million barrels per day an increase of 20k barrels per day over last week. Ethanol stocks grew 1.1 million barrels to 23.4 million barrels.
- Spreads: N/U 9 carry, U/Z 9 carry, Z/H 10 carry, Z/N 16 carry.
Soybean prices gathered strength from meal and oil. Bargain hunters emerged when July beans dipped down to $8.19. Prices drew additional support from the USDA’s soybean export announcement.
- Closes: July at $8.28 ½, up 6 ½ cents, August at $8.35 ½, up 6 ¾ cents and November at $8.55 ¼, up 6 ¾ cents. Products were firmer with meal up $3 bucks and
- Gulf premiums were 3 cents firmer for May/Jun/Jul.
- The USD announced the sale of 110k tonnes of US soybeans for 2018/19and 21k tonnes for 2019/20 to an unknown destination.
- The average trade estimates for tomorrow’s sales report are as follows: 100-800 tmt for beans, 75-400 tmt for meal and 4-25 tmt for soyoil.
- Spreads: N/Q 7 carry, Q/X 19 ¾ carry, X/F 12 carry, and X/N 41 carry.
The wheat market was mostly lower on continued profit taking and technical selling. The Chicago July failed to touch or push through its 100-Day MA of $4.82 ¼. More rain is slated for the Southern Plains this and next week. Many ideas are that this year’s winter wheat crop will be low protein wheat after all the rain and cool temperatures. Areas in northwestern ND that have been seeded with spring wheat are actually in need of moisture.
- July closes: Mpls at $5.43 ¾, up ¾ cent, KC at $4.31 ½, down 4 ½ cents and Chicago at $4.72 ¾, down 6 cents.
- Gulf premiums were 5 cents firmer for May.
- Weekly export sales estimates: 100-700 tmt. The new marketing year begins June 1 for wheat.
- Paris wheat prices fall on weakness in the US wheat market and improving conditions in part of the EU.
- Lots of rain is expected of fall on the winter wheat crop the balance of this week and next week.
- Spreads: Mpls N/U 8 carry, U/Z 12 carry, Kansas City N/U 11 carry, U/Z 21 carry, N/N 70 ¾ carry.