Afternoon Market Highlights


Highlights

The Ag markets traded higher on fund buying, in modest volume.  The focus most likely will be on updated weather maps over the weekend.  Investors are said to be looking toward the USDA’s August 12th production and stocks report.    

  • Cattle on Feed Report for June: on feed July 1 at 102% (101.9), June placements at 98% (98.2) and June marketings at 97.0 % (97.0).
  • Energy markets are mostly higher with crude oil up 38 at $55.68/barrel.
  • The gold market turned lower on a bout of profit taking after tickling a 6-year high.
  • DJIA up 15 at 27238, S&P down 6-7 at 2990 and the NASDAQ down 28 at 8178. 

Corn

The corn market traded higher on strength from the soybean market and fund buying after a weaker start to the week. The corn market lost 23 ½ cents 

  • Closes: September at $4.30 ¾, up 6 ¼ cents, December at $4.35 ¾, up 6 cents and July at $4.51 ¼, up 5 ½ cents. The last trade in the September was at $4.32.
  • Safras pegs the Brazilian corn crop at 103.97 mmt for 2019/20. This compares to the latest USDA estimate at 101.0 mmt and 101.0 mmt in 2018/19.
  • Spreads: U/Z 4 ¾ carry, Z/H $8 ¼ carry, Z/N 15 ¼ carry, N0/Z0 32 ¾ inverse. 

Oilseeds

Soybeans bounced on fund buying, dwindling sell orders and rumblings that China may be looking to buy US beans, pork and cotton soon. 

  • Closes: August at $9.01 ½, up 20 ¼ cents, November at $9.19 ¼, up 20 ¼ cents and July at $9.56 ½, up 17 ¾ cents. The products were stronger with meal up 4-5 bucks and oil up 46 points.
  • Safras estimates the Brazilian soybean crop at 123.788 mmt for 2019/20. This compares to USDA’s latest forecast of 123.00 mmt and last year at 117.00 mmt.
  • Brazil’s 2018/19 soybean protein levels tested at 36.83%, below 37%, the first time in the past four harvests. China buys 80% of Brazil’s beans and they require protein levels between 35-36%.
  • Spreads: Q/X 18 carry, X/F 12 ¼ carry, X/N 37 ¾ carry. 

Wheat

The wheat market traded higher in sympathy with the row crops and renewed buying interest from weakness earlier in the week. The Mpls September sits at an 89 ¼-cent premium to the Kansas City September. 

  • September closes: Mpls at $5.29 ¼, up 3 ¾ cents, KC at $4.40, up 7 ¼ cents and Chicago at $5.02 ½, up 9 cents.
  • Winter wheat harvest looks to be on the downhill slide with many folks getting wrapped up by Monday.
  • EU wheat prices were stronger on strength in the US wheat market, despite harvest pressure in Europe.
  • Spring wheat tour takes off next week with scouts out and about western MN, northern SD and all of North Dakota.
  • The variable storage rate for KC was last at 69% of full carry. Chicago was last at 54.5% of full carry.
  • Spreads: Mpls U/Z 13 ¼ carry, Z/H 14 carry, Kansas City U/Z 19 ½ carry, U9/U0 69 carry.