Afternoon Market Highlights


Highlights

  • CHS Hedging is offering an Energy Risk Management class on June 19th, Grain Hedging Classes on June 25th, and Introduction to Technical Analysis on June 26th. For more information and to sign up, please visit www.chshedging.com.
  • Last trading day for July grain and oilseed options is on Friday, June 21st.
  • The energy markets were mostly higher today, with July crude oil up 20 cents at $52.49 as of 3:56PM PM.

 Corn

Corn traded higher today ahead of the weekend. Rain is expected in much of the Midwest, which continues to add uncertainty to the market. Crop progress will be released on Monday, and planting progress estimates are near 95%. The market will likely be more focused on the crop conditions and corn emerged, however. Today’s high in corn was the highest corn has traded since July of 2014. For the week, July corn gained 37 ½ cents.

  • The USDA reported an export sale of 125,613 metric tonnes for delivery to unknown destinations during the 2019/2020 marketing year.
  • India allowed for two trading companies to import 50,000 tonnes each of new crop non-GMO corn into the country with a reduced import tax of 15%. Normally India imposes an import tax of 60% on corn.
  • The CFTC COT report showed corn speculators buyers of 1,948 contracts, bringing them net long 66,933 contracts.
  • Closes: July at $4.53 up 11; September at $4.58 ¼ up 10 ½; December at $4.63 ½ up 7 ¾; March at $4.67 ½ up 6 ½.
  • Spreads: N/U 4 ¾ cent carry; U/Z 5 ½ cent carry; N/Z 10 cent carry; Z/H 4 ¼ cent carry.

 Oilseeds

Soybeans have traded higher today on wet weather concerns. Additional support for the market came from corn. Estimates for Monday’s crop progress are 85% planted versus the 5-year average of 93%. Soybean conditions will not yet be released on the report. For the week, July soybeans gained 41 cents.

  • The USDA reported a cancelation of a sale for 136,000 tonnes of soybeans to China during the 2018/2019 marketing year, and new sales of 130,000 tonnes of soybeans to both China and unknown destinations.
  • The CFTC COT report showed speculators sellers of 7,029 contracts, bringing them net short 115,169 contracts.
  • Closes: July at $8.96 ¾ up 8 ¾; August at $9.03 up 8 ½; November at $9.23 ½ up 8 ¼; January at 9.35 up 8 ¼.
  • Spreads: N/Q 6 ½ cent carry; Q/X 20 ¼ cent carry; N/X 26 ¾ cent carry; X/F 11 ½ cent carry.

 Wheat

The wheat markets were mixed today with Minneapolis wheat trading mostly lower, Chicago mixed but mostly higher, and Kansas City higher. The weakness in Minneapolis wheat could be stemming from the current weather forecast. There is rain in the forecast, which would be beneficial for the Minneapolis wheat crop and harmful to Chicago and Kansas City. This also could be encouraging spread trading between the different types of wheat. For the week, Chicago July wheat gained 35 cents, Kansas City July up 28 cents, and Minneapolis July down 4 ¾ cents.

  • The French wheat crop was rated at 80% good to excellent, unchanged from last week and above last year’s 76% good to excellent rating.  
  • Philippine millers bought 110,000 tonnes of feed wheat for July and August arrival with a price tag between $210 and $215 a tonne including cost and freight.
  • The CFTC COT report showed speculators buyer of 12,690 contracts of Chicago wheat, bringing them to a net short of 44,055 contracts. The speculators were also buyers of 1,517 contracts of Kansas City wheat bringing them to a net short of 23,465 contracts.
  • July closes: Chicago at $5.38 ½ up 3; Kansas City at $4.77 up 8 ¾; Minneapolis at $5.64 down 3.
  • Spreads: Chicago N/U 3 ¼ cent carry; Kansas City N/U 12 cent carry; Minneapolis N/U 7 ½ cent carry.