Afternoon Market Highlights


Highlights

  • CHS Hedging has a scout on the spring wheat tour. Follow us on Twitter at hedgeit to get live updates on her progress.
  • Last trading day for August grain and oilseed options is on Friday, July 26th. First notice day for August soybeans, soyoil, and soy meal is Wednesday, July 31st.
  • Thank you for your patience as CHS Hedging is transitioning to a new phone system. We greatly appreciate your cooperation.

 Corn

Corn started higher but closed lower on the day. The weakness in corn was likely due to a wetter forecast. Corn has remained a choppy, weather driven market as the traders wait for updated acreage numbers on the August WASDE report.

  • Ethanol production decreased by 27,000 bpd to 1,039,000 bpd. Inventories were 23.7 million barrels, 0.3 million barrels higher.
  • Spreads: U/Z 6 ½ cent carry; Z/H 9 cent carry; U/H 15 ½ cent carry; Z/N 16 ¼ cent carry.
  • Closes: September at $4.24 down 1 ½; December at $4.30 ¾ down ¾; March at $4.39 ¾ down ¾; May at $4.43 ½ down ¾.

 Oilseeds

Soybeans traded higher today, ignoring news of a cancellation this morning. The strength in beans was likely due to a technical bounce. The market also drew support from upcoming U.S.-China trade talks that will resume in person next week.

  • The USDA announced a cancellation of 100,000 tonnes of soybeans for delivery to unknown during the current marketing year this morning.
  • Spreads: Q/U 5 ¼ cent carry; Q/X 17 ½ cent carry; X/F 13 cent carry; F/H 9 ¾ cent carry.
  • Closes: August at $8.91 up 5 ¼; September at $8.96 ¼ up 4 ¾; November at $9.08 ¼ up 4 ½; January at $9.21 ¼ up 4 ¾.

 Wheat

Chicago and Kansas City wheat traded higher today. Russia Sovecon lowered their 2019 wheat crop estimate to 73.7 million tonnes from 76.6 million tonnes. Additional support comes from the intense heat much of Europe is experiencing. Minneapolis wheat has felt pressure today as the spring wheat tour continues to find good yields. Yesterday’s results were an average yield of 45.2 bushel per acre versus 38.9 last year.

  • Philippine importers purchased 275,000 tonnes of feed wheat expected to come from Australia, with prices ranging from $237 and $245 per tonne.
  • Spreads: Chicago U/Z 8 ½ cent carry; Kansas City U/Z 16 cent carry; Minneapolis U/Z 13 ¾ cent carry.
  • September closes: Chicago at $4.97 ¾ 10 ½; Kansas City at $4.39 ½ up 8; Minneapolis at $5.21 ¾ up 1 ¾.