Afternoon Market Highlights


Highlights

  • The U.S. GDP for the second quarter increased by 2.1%. This was down from 3.1% in the first quarter.
  • Reports surfaced today that the Chinese government will allow companies to purchase multiple U.S. commodities, such as pork, corn, and soybeans. This comes ahead of the U.S.-China trade talks resuming next week.
  • First notice day for August soybeans, soyoil, and soy meal is on Wednesday, July 31st.

 Corn

Corn traded lower today as the weather continues to look favorable. Additional pressure comes as the month end is drawing closer. Corn is starting to look oversold on the chart, with the RSI reaching 31.6%. 30% or lower is generally considered to be oversold. The September contract dipped down to $4.13 to completely fill a gap in the chart from May. For the week, September corn lost 16 ¼ cents and December lost 11 ¼ cents.

  • CFTC COT showed speculators sellers of 32,200 contracts, bringing their net long position down to 108,900 contracts.
  • Closes: $4.14 ½ down 4; December at $4.24 ½ down 3; March at $4.34 ½ down 2 ¾; May at $4.38 ¾ down 2 ¾.
  • Spreads: U/Z 10 ¼ cent carry; Z/H 10 cent carry; U/H 20 cent carry; Z/N 17 ¾ cent carry.

 Oilseeds

Soybeans traded higher today drawing strength from the upcoming U.S. China trade talks. The market is hopeful that talks will be successful and will lead to China purchasing U.S. soybeans. August soybeans closed above their 50-day moving average of $8.83. For the week both August and November soybeans lost 18 ¼ cents.

  • China’s customs office announced they will be allowing Russian soybean imports into the country.
  • CFTC COT showed speculators buyers of 1,400 contracts, bringing their net short to 56,400 contracts.
  • Closes: August at $8.83 ¼ up ¾; September at $8.88 ¾ up 1; November at $9.01 up 1 ¼; and January at $9.14 ¼ up 1.
  • Spreads: Q/X 17 ¾ cent carry; U/X 12 cent carry; X/F 13 ½ cent carry; F/H 11 ½ cent carry.

 Wheat

Chicago and Kansas City wheat traded lower today, and Minneapolis was mixed. The weakness in wheat is a combination of harvest pressure and intermarket spread trading. Reports are also surfacing that Argentina is expecting to have another record wheat crop, which will add to the already large world wheat stocks. For the week September Chicago wheat lost 6 ½ cents, September Kansas City lost 8 ¼ cents, and Minneapolis lost 4 ¼ cents.

  • China’s customs office announced that they will allowing Russian wheat imports into the country.
  • The French wheat crop was rated 73% good to excellent, unchanged from last week. The crop is estimated at 63% harvested versus 33% last week.
  • CFTC COT showed speculators sellers of 5,889 contracts of Chicago wheat, bringing their net short to 30,793 contracts. Speculators were also sellers of Kansas City wheat, as they sold 3,918 contracts bringing their net short to 17,988 contracts.
  • September closes: Chicago at $4.96 down 3 ½; Kansas City at $4.31 ¾ down 5 ¾; Minneapolis at $5.25 1 ½.
  • Spreads: Chicago U/Z 8 cent carry; Kansas City U/Z 18 cent carry; Minneapolis U/Z 12 ½ cent carry.