Afternoon Market Highlights


Highlights

Ag markets close at noon tomorrow in observance of the July 4th Holiday. There will be no markets until Friday morning.  CHS Hedging offices will be closing at 3 PM Chicago Time on Wednesday, July 3rd and Friday, July 5th    

  • The next USDA S&D report is scheduled for July 11 at 11 AM CDT.
  • Energy markets are weaker with crude oil down over 2 bucks at $56.48/barrel.
  • The US$ is slightly weaker while the gold market soars back toward the recent highs, trading up 27-28 bucks at $1,417/ounce.
  • DJIA up 69 at 26786, S&P up 11 at 2979 and the NASDAQ up 17 at 8109.  

August Gold

Corn

Corn prices traded both sides, finishing the day in positive territory on technical buying and crop conditions ratings. 

  • Closes: September at $4.19, up 3 ½ cents, December at $4.26, up 3 ½ cents and July at
  • Corn did not fully fill the gap, wasn’t able to drop below 420 ½, just a quarter cent below yesterday’s low.
  • Unchanged crop conditions gave support to the corn market since traders were looking for a slight increase. ECB states seemed to be where a lot of the problems are right now.
  • Seems to be some buying going on, but pretty quiet markets as we wait for the holiday.
  • Open interest has been going up for the last few days, Dec contract up 17500.
  • Still looking towards the resurvey on acres starting this month that will not be released for about 6 weeks.
  • US Corn is too expensive right now in the export market and Brazil harvest is expecting a big crop.
  • Agriculture Undersecretary for Farm Production and Conservation Bill Northey stated today that he believes the prevented planting acres will exceed 10 million.
  • Spreads: U/Z 6 ¾ carry, Z/H 8 ¾ carry, Z/N 16 ½ carry, N0/Z0 25 ½ inverse.

Oilseeds

The soy complex closed lower on improving weather conditions, planting progress and fears that the African Swine Fever may be a much bigger issue that what has been publicly reported, resulting in dwindling demand for beans and meal. 

  • Closes: August at $8.79 ¾, down 10 cents, November at $8.98 ¾, down 9 ¾ cents, July at $9.36 ¾, down 7 ¾ cents. The products were weaker with meal 1-2 bucks lower and oil down 32 points.
  • The canola market closed lower in sympathy with the US soy complex. Strength in the CD$ and beneficial rain events across the Canadian Prairies provided additional pressure.
  • Spreads: Q/X 19 carry, X/F 11 ½ carry, X/N 38 ¼ carry. 

Wheat

The wheat market traded lower from winter wheat harvest activity with reports of yields being fairly good. Farmer selling is light despite as the combines are rolling with expectations for increased selling once the harvest winds down. There are thoughts that there will be a good portion of the winter wheat crop finding a home as a feed ingredient in the livestock sector.  

  • September closes: Mpls at $5.36 ¼, down 8 ¼ cents, KC at $4.32 ¾, down 11 ¼ cents and Chicago at $5.03 ¼, down 8 ½ cents.
  • Egypt bought 60k tonnes of Romanian wheat for August shipment.
  • Russian wheat exporters are said to be reluctant sellers of the newly harvested wheat because of good protein levels.They typically ship 12.5% protein wheat.
  • Paris milling wheat traded lower in sympathy with the US wheat market.
  • Duluth stocks declined 268k bushels to 11.5 mb.Outstanding receipts in Duluth sit at 1,175 contracts.
  • France makes preparations to load their second boat of their newly harvested wheat for North Africa.The French wheat harvest is just getting underway with protein levels unknown at this time.
  • Spreads: Mpls U/Z 14 ¾ carry, U/U 47 ¾ carry, Kansas City U/Z 22 ½ carry.
  • Thoughts are that there will not be another VSR trigger with the KWU/KWZ because a sizable amount of the wheat is expected to go for feed, despite big crop ideas. Farmers are not expected to be willing sellers until after the harvest where, in most years, as much as 40% of the crop gets sold in the fall.