Afternoon Market Highlights
6/12/2019 2:59:48 PM
- CHS Hedging is offering an Energy Risk Management class on June 19th, Grain Hedging classes on June 25th, and a Technical Analysis class on June 26th.
- President Trump “has a feeling” that the U.S. and China can strike a trade deal, but he has continued to threaten China with more tariffs if no deal is reached.
- Last trading day for June lean hog futures and options is on Friday, June 12th.
Corn traded higher today following yesterday’s bullish WASDE report. Further support came from a cool, wet Midwestern weather forecast. December corn has continued its struggle to hold above $4.50, a key resistance point on the charts.
- Weekly ethanol production increased by 52,000 bpd to 1.096 million bpd. Ethanol inventories were lowered by 0.8 million barrels to 21.8 million barrels. Ethanol margins were reported at negative 9 cents, which was 3 cents lower than the previous week.
- The French farm office raised their corn ending stocks estimates to 3.0 million tonnes from 2.7 million tonnes.
- Estimates for weekly export sales are 250,000 to 550,000 metric tonnes of old crop and 100,000 to 300,000 metric tonnes of new crop.
- Closes: July at $4.30 up 2 ¼; September at $4.38 ¼ up 2; December at $4.48 ½ up 1 ½; March at $4.56 ¼ up ¾.
- Spreads: N/U 8 ¼ cent carry; U/Z 10 ¼ cent carry; N/Z 18 ¾ cent carry; Z/H 7 ½ cent carry.
Soybeans ripped higher today as wet weather is forecast for much of the Midwest. The continued cold and wet weather will continue to hinder soybean plantings, and potentially reduce yield. The USDA did not adjust their yield number yesterday but are expected to on the July report.
- Weekly export sales for soybeans are estimated at 200,000 to 500,000 metric tonnes of old crop and 100,000 to 300,000 metric tonnes of new crop, soy meal estimates are 100,000 to 250,000 metric tonnes of old crop and 0 to 100,0000 metric tonnes, soyoil estimates are 8,000 to 25,000 tonnes of old crop and 0 new crop.
- Closes: July at $8.78 up 18 ¾; August at 8.84 ¾ up 18 ½; November at $9.05 ½ up 18 1/2; January at $9.17 ¾ up 17 ½.
- Spreads: N/Q 6 ¾ cent carry; Q/X 20 ½ cent carry; N/X 27 ¼ cent carry; X/F 12 ¼ cent carry.
The wheat markets were mixed today as the Chicago and Kansas City contracts traded mostly higher and the Minneapolis contracts were mostly lower. The strength in the Chicago and Kansas City contracts came from strength in the corn market, as well as the wet weather forecast. The weakness in Minneapolis wheat could be stemming from the needed rains expected in spring wheat country, as it has not been as wet as the Midwest.
- Jordan did not make a purchase in their tender for 120,000 tonnes of milling wheat.
- The French farm office raised their estimate of soft wheat stocks from 2.3 million tonnes to 2.4 million previously. Their exports of 9.75 million tonnes were left unchanged.
- Estimates for weekly export sales are -50,000 to 50,000 metric tonnes of old crop and 250,000 to 450,000 metric tonnes of new crop.
- July Closes: Chicago at $5.26 ¼ up 8 ¼; Kansas City at $4.63 up 5 ½; Minneapolis at $5.64 ¼ down 4 ¾.
- Spreads: Chicago N/U 4 ½ cent carry; Kansas City N/U 12 ¾ cent carry; Minneapolis N/U 8 cent carry.