Afternoon Market Highlights
5/24/2019 2:59:06 PM
Pretty quiet on the Ag market front today, despite the big moves across the commodities. Many folks are sidelined ahead of the Memorial Day Holiday weekend. Lots of chatter about the farm aid program that was released yesterday. There was new chatter this morning about revisions to the current prevent plant program. Market focus will be on Monday night weather reports and Tuesday afternoon’s crop progress report.
- The funds covered 170k of their short position, resulting in an estimated net short position near 122k contracts as of Tuesday, May 21, 2019.They could very well be on the long side going into next week.
- Ag markets will be closed Sunday night and Monday in observance of the Memorial Day Holiday. Trade resumes Monday evening at 7 PM CDT.
- Energy markets were mostly higher with July crude oil up 86 at $58.77/barrel.
- US$ tipped over, down 276 at 97.58, the gold market was down 1-2 bucks and the CD$ was slightly higher.
- The equity market traded higher with the DJIA up 119 at 25609, S&P up 8 at 25609 and the NASDAQ up 19 at 7647.
- CHS Hedging is offering Grain and Energy Hedging classes the end of June at the IGH office. There is technical class offering on June 26th in the IGH office.Check out our website at www.chshedging.com for more details and to register for classes.
The corn market turned higher overnight as the focus returns to cool, wet weather conditions for much of the US Midwest. The July contract traded above $4. There are gaps in the July corn from $3.85 ¾-$3.84 ¾, and again from $3.60 ¼-$3.57 ¼. Gaps often times get filled.
- Closes: July at $4.04 ¼, up 14 ½ cents, September at $4.12 ½, up 14 cents and December at $4.19 ¾, up 11 ¾ cents. It was a great day in the corn camp today.
- Gulf premiums were 1-2 cents firmer through July. Balance of deferred months were unchanged. River logistics are still a mess.
- Planting progress is expected to be just shy of 60% complete through Sunday, May 26th.
- USDA announced the sale of 13k tonnes of corn to Mexico for the current marketing year.
- The Brazilian 2018/19 corn crop is estimated at 97.5 mmt, just shy of their record production at 97.8 mmt from a couple years ago and well above last year’s crop.
- Spreads: N/U 8 ¼ carry, U/Z 7 carry, Z/H 9 ½ carry, Z/N 14 ¾ carry.
The soybean market traded higher in sympathy with the corn market, in modest volume ahead of the long weekend. Prices drew additional support from slowed planting progress because of unfavorable weather conditions. Some of the intended soybean acres may not get planted because of wet conditions.
- Closes: July at $8.29 ¾, up 8 ¼ cents, August at $8.36 ½, up 8 ¼ cents, November at $8.56 ½, up 8 cents. The products were stronger with meal up 3-4 bucks and oil up 23 points.
- The July traded above its 20-Day MA of $8.31 ¼ but failed to hold at or above it by the close.
- Gulf premiums were 4 cents firmer for spot May......deferred months unchanged.
- Planting progress is expected to be near 25% complete through Sunday, May 26th.
- Spreads: N/Q 7 carry, N/X 26 ½ carry, Q/X 19 ¾ carry, X/F 11 ¾ carry, X/N 42 ½ carry.
Wheat prices traded higher on spillover strength in the row crops and wet weather conditions for the next several days in the Southern Plains area. Additional support came from pre-weekend short covering. The Mpls market garnered strength from delayed planting progress and cool, dry soil conditions in Northwestern North Dakota.
- July closes: Mpls at $5.48, up 13 ¾ cents, KC at $4.43 ¼, up 18 cents and Chicago at $4.89 ½, up 19 ¼ carry.
- Winter wheat crop conditions are expected to decline or stay the same from this week’s rain events across the Southern Plains.
- Spring wheat plantings are estimated at 75-85% complete versus 70% last week.
- Spreads: Mpls N/U 7 carry, U/Z 10 ¾ carry, Kansas City N/U 11 ¼ carry, N/N 75 carry, Chicago N/U 7 ½ carry.