Afternoon Market Highlights
7/16/2019 3:17:55 PM
The grain markets were lower on technicals, profit taking and forecasts suggesting relief from extremely high temps this weekend and into next week. There is no new news on trade talks with China and the USMCA is waiting for the Democrats approval. Fresh news is very light.
- Energy markets are lower with crude oil down over at buck at $58/barrel.
- The US$ is stronger, gold is over $8 lower and the CD$ is weaker.
- The DJIA is up 6 at 27365, S&P down 8 at 3008 and NASDAQ down 29 at 8228.
Corn prices were lower on profit taking, improving crop conditions and beneficial rains across much of the US. The Brazilian 2nd crop harvest is over the halfway mark with what looks to be a big crop. Hearing reports that the US corn crop is coming along. It is behind but is also rapidly improving from the hot/humid temps and rain events.
- Closes: September at $4.35 ¼, down 5 ¾ cents, December at $4.41 ¼, down 5 ¾ cents, July at $4.5, down 3 ¾ cents.
- December corn still has an unfilled gap at $4.20 from back on May 24th. It got to $4.20 ½ back on July 2nd.
- Gulf premiums were 1 cent firmer for Aug/Sep.
- Brazil’s 2nd crop corn harvest is near 60% complete.
- Hearing that the US corn could tassel by this weekend or next week in some areas.
- There appears to be a great deal of uncertainty about the number of planted acres this year.Ideas are that there could be many more acres than what was first intended back in March.
- Spreads: U/Z 6 carry, Z/H 7 ½ carry, Z/N 13 ½ carry, N0/Z0 36 ½ inverse.
Soybeans traded lower on technical selling and favorable weather conditions. Hearing rumblings about China rolling their bean cargoes forward. Poor crush margins and lack of demand from ASF were noted as possible reasons.
- Closes: August at $8.87 ¾, down 14 cents, November at $9.06, down 14 cents and July at $9.44 ½, down 11 ½ cents. The products were lower with meal down $3 but holding above $300/ton and oil down 29 points.
- Gulf premiums were mostly unchanged.
- August broke $9 and failed to get back to that level today.
- Spreads: Q/X 17 ¾ carry, X/F 12 ¾ carry, X/N 38 ¾ carry.
CHS IGH Soybean Crop
The wheat market traded lower on lack of fresh supportive news and spillover weakness in the row crops. KC saw additional pressure from the active winter wheat harvest with big yields being noted.
- September closes: Mpls at $5.30 ¼, down 2 ¼ cents, KC at $4.46, down 2 ¾ cents and Chicago at $5.07 ½, down ¼ cent.
- Egypt tenders for 55-60k tonnes of optional origin wheat this afternoon for LH Aug shipment.
- The Russian wheat crop is thought to be somewhere between 75.0 and 80.0 mmt with exports between 34.0-40.0 mmt.Russia has plans to increase their wheat production and exports over the next several years.
- Spreads: Mpls U/Z 13 ¼ carry, U/U 47 ¾ carry, Kansas City U/Z 20 ¼ carry, U/U 69 carry.