Afternoon Market Highlights


Highlights

The Ag markets traded lower most of the day on improved conditions in the corn market and worries about the outcome of this week’s trade talks with China. Prices saw additional pressure from technical selling and position squaring ahead of the end of the month.  First notice Day for August is tomorrow with all long positions being reported after the close of business today.      

  • The energy markets are mostly stronger with crude oil up 1.20 at $58/barrel.
  • DJIA down 29 at 27192, S&P down 9-10 at 3012, NASDAQ down 15-16 at 8277.
  • The US$ is steady at 98 points, the CD$ is a freckle stronger at 0.7612 and the gold market is up 11-12 bucks at $1,435/ounce.
  • Farmfest begins next week (Aug 6-8) in Redwood Falls MN. CHS Hedging will host a booth at the event. 

Corn

The corn market got thumped today on improved crop conditions, forecasts for favorable weather conditions and technical selling.  The December contract filled the gap at $4.20.  The next gap sits at $3.80-$3.77 ½ back on May 14, 2019. 

  • Closes: September at $4.11 ¼, down 5 ¾ cents, December at $4.21, down 6 cents and July at $4.39 ¼, down 5 cents.
  • Market awaits the USDA August 12th report at 11 AM CDT.There mixed feelings as to whether they lower their current planted acre forecast of 91.4 million.
  • Planted acres for 2020 is estimated at 95.0 million acres.
  • Spreads: U/Z 9 ¾ carry (consider rolling short hedges to the Dec at 10 cents) .........Z/H 10 carry, Z/N 18 ¼ carry, N/Z 23 ½ inverse. 

Oilseeds

Soybean prices were on the defensive most of the day, in sympathy with the corn market, improving weather conditions and concerns that no deal will be struck from this week’s trade talks with China. 

  • Closes: November at $8.96 ¾, down 7 ½ cents, July at $9.44, down 4 ¾ cents and red November at $9.49 ¼, down 2 ¾ cents. The products were weaker with meal down $4/ton and oil down 12 points.
  • The canola market traded lower on spillover weakness in the US soy complex.
  • The Canadian canola crop is said to be in decent shape after the recent rain events a week or so ago.
  • Spreads: X/F 13 ½ carry, F/K 23 ¼ carry, X/N at 47 ½ carry. 

Wheat

Wheat prices were weaker on borrowed weakness in the row crops. Prices were pressured from technical selling in Chicago after the September contract failed to trade above last week’s high of $5.07 ½. Wheat inventories are plentiful wit the winter wheat harvest winding down. 

  • September closes: Mpls at $5.28 ¾, down 3 ¾ cents, KC at $4.32 ¾, down 3 ¾ cents and Chicago at $4.97 ¼, down 6 ¼ cents.
  • Japan is in the market for their weekly food tender this week (24k US spring wheat and 54k Canadian spring wheat) for October shipment.
  • Spreads: Mpls U/Z 11 ¾ carry, Z/H 13 ¾ carry.......Kansas City U/Z 17 ¼ carry, U/U 62 carry.