Afternoon Market Highlights


Highlights

  • CHS Hedging will be offering an Energy Risk Management class on June 19th, Grain Hedging classes on June 25th, and an Introduction to Technical Analysis class on June 26th. For more information and to sign up, please visit www.chshedging.com.
  • It was reported that the U.S. trade talks with Mexico will continue, and that if no agreement is reached by Monday (June 10th), tariffs of 5% will go into effect.
  • Last trading day for June live cattle options is Friday June 7th and Monday is first notice day for June live cattle futures.

 Corn

Corn traded higher today in sympathy with the wheat market. Export sales this morning showed a negative 8,800 metric tonnes, but the trade disregarded this. Planting progress is still behind pace, with estimates for Monday’s crop progress report at 81% versus the average of 99%. Monday’s report will also give us the first blush of crop conditions.

  • Reports are circulating that Zimbabwe’s government is planning an international tender to import 750,000 tonnes of corn. The tender has not been officially released, and a time frame isn’t known yet.
  • Closes: July at $4.20 ½ up 5 ¾; September at $4.29 ½ up 5 ¼; December at $4.38 ½ up 5.
  • Spreads: N/U 9 cent carry; U/Z 9 cent carry; N/Z 18 cent carry; Z/H 8 ¼ cent carry.

 Oilseeds

Soybeans traded lower today, as the weather forecast is starting to look drier. Further pressure could be coming from potential escalation of the U.S.-China trade dispute. China has issued propaganda regarding the U.S. trade dispute on their national media, and President Trump has continued to threaten to add more tariffs.

  • Canada-China trade talks have resumed regarding the countries trade dispute over canola. The Canadian prime minister is concerned the dispute could extend to more than canola and is looking to meet with Chinese President Xi this month.
  • Closes: July at $8.68 ¾ down 1; August at $8.75 ¼ down 1; November at $8.95 ¼ down 2.
  • Spreads: N/Q 6 ¾ cent carry; Q/X 20 cent carry; N/X 26 ½ cent carry; X/F 13 ¼ cent carry.

 Wheat

Wheat futures charged higher today as dryness in Canada, Australia, and Russia could threaten the countries crops. In contrast, much of the U.S. wheat crop has been subject to very wet conditions, also hampering the crops.

  • Argentina’s wheat planting area could rise to be as high as 6.8 million hectares, the highest since the 2001-02 crop year according to the Argentine Wheat Association.
  • Saskatchewan’s reporting that 99% of their spring wheat crop has been planted versus 93% this time last year.
  • July Closes: Chicago at $5.10 up 19 ¼; Kansas City at $4.56 up 10 ¼; Minneapolis at $5.65 ¾ up 18.
  • Spreads: Chicago N/U 4 cent carry; Kansas City N/U 13 cent carry; Minneapolis N/U 9 cent carry.