Afternoon Market Highlights


Highlights

The USDA proposed their trade war aid program for the US farmer, with a lot of uncertainty about the details of the aid payment.  The aid program is thought to be set up with three separate payments, although it sounds like the first payment in July/August is the only payment that is guaranteed to be delivered. Weather forecasts look mostly unchanged for the balance of this and next week. 

CHS Hedging offices will be closing at 3PM tomorrow, in observance of the Memorial Day Holiday weekend. 

  • Holiday trading hours: grain markets will be closed Sunday night and Monday. Trade will resume on Monday evening at 7 PM Chicago Time.
  • May Cattle on Feed report is scheduled for release tomorrow at 11AM CDT.Average trade estimates are as follows: On feed May 1 at 103% (102-104), April placements at 113% (109-119) and April marketings at 107% (106-107).
  • Energy markets were mixed with July crude oil down over $3 at $58.15/barrel.
  • The US$ is down 187 at 97.85 and the gold market is up 8-9 bucks at $1,283/ounce.
  • Equity market is weaker with the DJIA down 286 at 25490, S&P down 36 at 2819 and the NASDAQ down 122 at 7628. 

Corn

Corn prices opened higher on planting delays and short covering. Prices turned lower midday on the USDA farm aid announcement. Ideas are that the farm aid will encourage more acres.  In reality, all we really know at this point is that it could possibly discourages prevent plant acres. 

  • Closes: July at $3.89 ¾, down 4 ¾ cents, September at $3.98 ½, down 5 ¼ cents, and December at $4.08, down 4 ¾ cents.
  • Gulf premiums were 1-2 cents firmer for June and unchanged for the deferred months.
  • Weekly export sales came in at 626 tmt compared to trade estimates between 250 tmt and 1.1 mmt.
  • Spreads: N/U 8 ¾ carry, U/Z 9 ¼ carry, Z/H 11 ¼ carry, Z/N 19 ½ carry. 

Oilseeds

The soybean market traded lower on ideas of increased soybean plantings as it is thought to be getting to late to plant corn in some areas. Hearing that time is running out for planting corn in parts of the ECB and that there will be an increase in soybean acres should the rains continue over the next week. 

  • Closes: July at $8.21 ½, down 7 cents, August at $8.28 ¼, down 7 ¼ cents and November at $8.48 ¼, down 7 cents. The products were lower with meal down 1-2 bucks and oil down 53 points.
  • Gulf premiums were mostly unchanged.
  • Weekly export sales were
  • Spreads: N/Q 6 ¾ carry, Q/X 19 ¾ carry, X/F 12 ¼ carry, X/N 44 ½ carry. 

Wheat

The wheat market closed lower in sympathy with the row crops. The farmer aid plan looks to encourage more acres to get planted to all crops (including spring wheat). Rains are still expected to come the balance of this and next week.  Crop conditions are next expected to improve with all the rain in the picture. 

  • July closes: Mpls at $5.34 ¼, down 9 ½ cents, KC at $4.24, down 8 ¼ cents, Chicago at
  • Weekly export sales were reported at 393 tmt compared to trade estimates of 0-700 tmt.
  • Spreads: Mpls N/U 7 ¾ carry, U/Z 12 ½ carry and Kansas City N/U 11 ¾ carry, N/N 76 ½ carry.