Afternoon Market Highlights
7/25/2019 4:20:14 PM
- The USDA released information on the Market Facilitation Program. Payments will be made using a per acre county rate and multiplying that by eligible acres. More information on the program is available here.
- Last trading day for August grain and oilseed options is on Friday, July 26th. First notice day for August soybeans, soy meal, and soyoil is Wednesday, July 31st.
- CHS Hedging is transitioning to a new phone system with no hold music. Thank you for your patience as we adjust to this change.
Corn traded lower today on a lack of fresh news. Additional pressure came from disappointing export sales. On the December chart, the 20-day moving average is about to cross the 50-day moving average at $4.37 ½. The 100-day moving average is $4.13.
- The international grains council lowered their world corn crop estimate by 3 million tonnes to 1.092 billion tonnes.
- The European Commission raised their corn production estimate to 69.5 million tonnes, up from 69.3 million last month.
- Weekly export sales were 121,200 tonnes of old crop, below estimates of 150,000 to 400,000 tonnes. New crop sales were 386,600 tonnes, above estimates of 100,00 to 300,000 tonnes.
- Closes: September at $4.18 ½ down 5 ½; December at $4.27 ½ down 3 ¼; March at $4.37 ¼ down 2 ½; May at $4.41 ½ down 2.
- Spreads: U/Z 9 cent carry; Z/H 9 ¾ cent carry; U/H 18 ¾ cent carry; Z/N 17 ¼ cent carry.
Soybeans traded lower today on disappointing export sales. The new crop sales were a net negative after cancellations from China were reported. This comes after hearing rumors all week of bean sales to China, but none were reported. Additional pressure to the market came from weak meal and oil prices. The December bean meal dipped low enough to fill a gap today that was left on a daily chart in May.
- Weekly export sales for soybeans were a negative 78,100 old crop, within estimates of -100,000 to 300,000 metric tonnes. New crop sales were 223,700 tonnes, within estimates of 100,000 to 300,000 tonnes. Soy meal sales were 87,300 tonnes of old crop, below estimates of 100,000 to 250,000 metric tonnes and 140,000 tonnes of new crop, within estimates of 50,000 to 150,000 metric tonnes. Old crop soyoil sales were 3,600 tonnes of old crop, below estimates of 8,000 to 22,000 and new crop sales were 9,200 within the estimates of 0 to 10,000.
- Closes: August at $8.82 ½ down 8 ½; September at $8.87 ¾ down 8 ½; November at $8.99 ¾ down 8 ½; January at $9.13 ¼ down 8.
- Spreads: Q/X 16 ¾ cent carry; X/F 13 ½ cent carry; F/H 11 ¼ cent carry; X/N 44 cent carry.
The wheat markets were mixed today. Export sales were good, but that didn’t seem to be enough to hold the market higher. The Spring Wheat tour concluded today, and our very own Ami Heesch reported the tour found an average yield of 43.1 bushels per acre versus 41.1 last year.
- The international grains council lowered their world wheat crop estimate by 6 million tonnes to 763 million tonnes.
- The European Commission lowered their wheat production from 142.3 million tonnes to 141.3 million tonnes but left their export estimates unchanged at 25.5 million tonnes.
- Weekly export sales were 659,800, which was above estimates of 200,000 to 450,000 tonnes.
- September closes: Chicago at $4.99 ½ up 1 ¾; Kansas City at $4.37 ¾ down 1 ¾; Minneapolis at $5.23 up ¾.
- Spreads: Chicago U/Z 7 ½ cent carry; Kansas City U/Z 13 ¾ cent carry; Minneapolis U/Z 13 ¼ cent carry.