Afternoon Market Highlights


Highlights 

  • CHS Hedging is offering Energy Hedging classes June 19, Grain Hedging classes June 25 and Technical Trading classes on June 26.Go to our website at www.chshedging.com for registration and class details.
  • The next USDA S&D report is scheduled for June 11th at 11 AM Chicago Time. There are mixed thoughts about whether the USDA makes a reduction to yield in this report.
  • Fertilizer contracts are expected to begin trading on the CME on Monday June 10th. 

Corn

The corn market traded lower on fund selling and ideas that the corn crop will get planted after all.  Time will tell on that. Prices saw additional pressure from spillover weakness in the wheat market. Bulls are said to need their daily feed to keep the momentum going. 

  • Closes: July at $4.14 ¾, down 10 ½ cents, September at $4.24 ¼, down 10 ½ cents, December at $4.33 ½, down 10 ½ cents.
  • The list of US goods that could see tariffs returned by Mexico is said to exclude corn. Mexico has been a decent buyer of US corn.
  • Weekly export sales estimates: 550 tmt-1.050 mmt.
  • IEG pegs the 2019/20 corn acreage at 84.9 million (USDA in March was at 92.8 million acres) with a yield of 174.0 resulting in total production at 13.6 billion bushels.
  • Spreads: N/U 9 ½ carry, N/Z 18 ¾ carry, U/Z 9 ½ carry, Z/H 8 ½ carry, N0/Z0 33 ¼ inverse. 

Oilseeds

The soybean market traded lower on improving weather for planting.  Additional pressure came from fund selling. 

  • Closes: July at $8.69 ¾, down 12 cents, August at $8.76 ½, down 12 ½ cents and November at $8.97 ¼, down 12 cents. The products were weaker with meal down 3-4 bucks and oil down 27 points.
  • Weekly export sales estimates: 250-750 tmt for beans, 100-350 tmt for meal and 8-25 tmt for soyoil.
  • Canola traded lower in sympathy with the US soy complex and expected rain events across Canada this weekend.
  • IEG Vantage pegs the 2019/20 US soybean crop at 85.037 million acres with a yield of 51.1 and total production at 4.313 billion bushels.
  • Spreads: N/Q 6 ¾ carry, Q/X 20 ½ carry, X/F 13 ¼ carry, X/N 37 ¾ carry.  

Wheat

The wheat market got thumped from continued bouts of profit taking. Concerns about crop damage in the winter wheat eased a bit after the crop conditions report showed a 3% improvement on Monday.  Some weather forecasts suggest a wetter pattern developing for the Black Sea region, Australia, Europe and Canada. 

  • July closes: Mpls at $5.47, down 13 ½ cents, KC at $4.47 ¼, down 21 ¼ cents, Chicago at $4.90 ¾, down 16 ½ cents.
  • Weekly export sales estimates: 0-600 tmt.
  • IEG Vantage estimates this year’s other spring wheat crop at 12.2 million acres down from their previous estimate of 12.8 million.
  • Spreads: Mpls N/U 9 ¾ carry, Kansas City N/U 13 carry.