Afternoon Market Highlights
7/22/2019 3:50:51 PM
- CHS Hedging will be transferring to a new phone system starting Tuesday afternoon. The new system will not have hold music. Please be patient as we adjust to this system.
- Last trading day for August grain and oilseed options is on July 26th. First notice day for August soybeans, soymeal, and soyoil futures is on Wednesday July 31st.
- CHS Hedging will have someone on the Spring Wheat Tour. Follow us on Twitter at hedgeit for updates.
Corn traded lower on improving weather conditions. There is also a lack of fresh supportive news, and the trade expected to see improving conditions on this afternoon’s crop progress report.
- Corn conditions were rated 57% good to excellent, down one percent from last week, versus estimates of 55% to 61%.
- Weekly export inspections were 438,045 tons, below the estimates of 500,000 to 750,000 metric tons.
- EU corn imports were reported at 1.2 million tonnes versus 685,000 last year.
- Closes: September at $4.22 ¼ down 8 ½; December at 4.26 ¾ down 9; March at $4.35 ¾ down 8 ¼.
- Spreads: U/Z 4 ½ cent carry; Z/H 8 ¾ cent carry; U/H 13 ¼ cent carry.
Soybeans traded lower today on a lack of follow through after Friday’s rumor of Chinese buying. Additional weather came from improving weather conditions, with forecasts showing cooler temps and plenty of rainfall.
- Soybean conditions were rated 54% good to excellent, unchanged from last week, versus estimates of 51 to 55%.
- Weekly export inspections were 559,462 tons within the estimates ranging from 450,000 to 750,000 tons.
- Closes: August at $8.88 ¼ down 13 ¼; September at $8.94 down 13 ¼; November at $9.05 ¾ down 13 ½; January at $9.18 ½ down 13 ¼.
- Spreads: Q/U 5 ¾ cent carry; Q/X 17 ¾ cent carry; X/F 13 cent carry.
The wheat markets were lower across the board, with Chicago wheat trading the lowest. The weakness in winter wheat can be attributed to a combination of harvest pressure, plentiful stocks, and spillover weakness from corn. Pressure in spring wheat stems from improving moisture in Canada, as well as overall weakness in the wheat complex.
- Spring wheat conditions were rated 76% good to excellent, versus estimates of 75% to 77%. Winter wheat harvest was 69% complete, versus estimates of 73%.
- Weekly export inspections were 433,117 tonnes, within the estimates of 350,000 to 550,000 tons.
- EU soft wheat exports over the first three weeks of 2019/2020 crop year were 585,000 tonnes, down from 648,000 tonnes in the prior year.
- September closes: Chicago at $4.87 ¼ down 15 ¼; Kansas City at $4.28 ¾ down 11 ¼; Minneapolis at 5.20 ¾ down 8.
- Spreads: Chicago U/Z 11 ½ cent carry; Kansas City U/Z 19 ¼ cent carry; Minneapolis U/Z 11 ½ cent carry.