Afternoon Market Highlights


Highlights

Ag markets traded lower on profit taking, slow weekly export sales, improving weather, and lack of fresh supportive news. Weather conditions look to be mostly favorable next week. China makes plans to make stronger trade deals with Russia for soybeans and other ag products.    

  • The Canadian dollar weakened against the US$ in sympathy with oil prices and less than expected home prices during the month of June.
  • The US$ is down 495 at 96.72, gold is up 24 bucks at $1,447/ounce and the CD$ is up 0.00015 at 0.7678.
  • DJIA is down 10 at 27208, S&P up 12 at 2997 and the NASDAQ up 17 at 8202.
  • The annual spring wheat tour begins next week.
  • The next USDA report is scheduled for August 12th at 11 AM CDT.
  • Crop conditions are expected to improve in next week’s progress/conditions report from this week’s warm and wet conditions. 

Corn

Corn prices were lower on improving weather, profit taking, disappointing export sales and lack of fresh supportive news. 

  • Closes: September at $4.24 ½, down 11 ½ cents, December at $4.29 ¾, down 11 ¾ cents, July at $4.45 ¾, down 9 cents.
  • Spread trade was noted, selling corn and buying soybeans.
  • Weekly export sales were 200/133 = 333 tmt versus trade estimates of 350-800 tmt.
  • Spreads: U/Z 5 ¼ carry (28% of full carry at 19 ¾ cents), Z/H 8 ½ carry, Z/N 16 carry, N0/Z0 29 ½ inverse (the high on Monday was at a 49 ¼-cent inverse). 

Oilseeds

Soybeans traded lower in sympathy with the corn market, poor weekly export sales, improving weather next week and lack of fresh supportive news. The canola market traded higher with the emergence of bargain hunters (after three sessions of losses). Weather forecasts suggest a better environment for the soybean crop next week, although many have said that August is the key month for crop development in soybeans. 

  • Closes: August at $8.81 ¼, down 1 ¼ cents, November at $8.99, down 1 ½ cents and July at $9.38 ¾, down ¾ cent.
  • Weekly export sales were reported at 128/198 = 326 tmt versus trade estimates of 100-700 tmt. Chinese cancellations were noted.
  • Spreads: Q/X 17 ¾ carry, X/F 12 ½ carry, X/N 39 ½ carry. 

Wheat

Wheat prices were lower on harvest pressure, lack of demand and spillover weakness in the corn market. Mpls lagged KC and Chicago. Mpls gained on KC with the Sep at a 93 ½ cent premium over the Kansas City Sep. 

  • September closes: Mpls at$5.25 ½, down 2 ¼ cents, KC at $4.33, down 8 ¾ cents, Chicago at $4.93 ½, down 12 cents.
  • Weekly export sales were reported at 373 tmt versus trade estimates of 200-400 tmt.
  • Argentina’s 2019/20 wheat crop is nearly 92% planted and they are expecting to have a bumper crop.
  • Spreads: Mpls U/Z 12 ¼ carry, Z/H 14 ¾ carry, Kansas City U/Z 20 ¼ carry, U/U 69 ½ carry.

August Gold