Afternoon Market Highlights


Highlights

Lack of fresh supportive news for the grain markets and improving weather for forecasts pressured the grain prices. Worries over the US trade war with China hung kept pressure on the markets as well.    

  • Weekly crop progress and conditions report is scheduled for today at 3 PM Chicago Time.
  • The energy markets are mostly weaker with crude oil down 76 at $59.45 barrel.
  • The US$ and gold are slightly higher while the CD$ is slightly weaker.
  • The DJIA is down 6 at 27325, S&P up a freckle at 3015 and the NASDAQ up 8 at 8252. 

Corn

Corn prices closed significantly lower (on profit taking), erasing last week’s gains. The September closed below its 20-Day MA of $4.42.  Inspections were in line with the trade estimates. Forecasts call for beneficial rains across the Midwest this week.   

  • Closes: September at $4.41, down 13 ¼ cents, December at $4.47, down 12 ¼ cents and July at $4.58 ¾, down 9 cents.
  • Gulf premiums were 5 cents weaker for July and August and 3 cents weaker for September.
  • Weekly export inspections came in at 676 tmt, middle of the range of estimates (500-800 tmt).
  • Crop conditions are expected to have declined 1-2% for the week ending Sunday, July 14, 2019.
  • Spreads: U/Z 6 ¾ carry, Z/H 6 ¾ carry, K/N 2 ¼ carry, N0/Z0 39 ¾ inverse. 

 September Corn


Oilseeds

The soy complex traded lower on technical selling, taking out nearly half of last week’s rally in the soybeans. August beans managed to close above the $9 support level. Weekly export sales were decent, despite not having Chinese purchases. Gulf premiums were mostly unchanged for July and August. 

  • Closes: August at $9.01 ¾, down 11 ½ cents, November at $9.20, down 11 ½ cents, July at $9.56, down 10 cents. Product were weaker with oil lagging meal on lower than expected stocks in the NOPA June crush report.
  • Weekly export inspections were at 854 tmt, above trade estimates (500-800 tmt).
  • Crop conditions are expected to be unchanged at 53% G/E.
  • NOPA soybean crush for June was a miss at 148.8 million bushels.The trade was expecting crush at 154.4 million bushels.Oil stocks were reported at 1.535 billion pounds and meal stocks were reported at 555k tons.
  • Spreads: Q/X 18 ¼ carry, X/F 12 ¼ carry, X/N 36 carry. 

August Soybeans

 

Wheat

The wheat market traded lower in sympathy with the row crops and winter wheat harvest pressure. Weekly export inspections were disappointing. Weather is mostly favorable for the spring wheat crop. 

  • Closes: Mpls at $5.32 ½, down 10 ¼ cents, KC at $4.49 ½, down 17 ¾ and Chicago at $5.07 ¾, down 15 ¼ cents.
  • Weekly export inspections were reported at 315 tmt, below trade estimates of 400-600 tmt.
  • Crop conditions are expected to be steady at 78% G/E. Winter wheat harvest is estimated at 62% complete versus 47% last week.
  • EU wheat prices traded lower in sympathy with Chicago wheat.
  • Spreads: Mpls U/Z 13 ¼ carry, Kansas City U/Z 20 carry, U9/U0 63 ¼ cents.