Afternoon Market Highlights


Highlights

The Ag markets chopped around today with the corn market pushing to the upside as bargain buyers emerged.  Gains w ere limited on increased tensions in the US/Chinese trade war.  Weather concerns are abound with ECB in much need of moisture and parts of the WCB and southern areas could benefit from dry/warm conditions.     

  • Egypt’s GASC tenders for 50-60k tonnes of optional origin wheat for FH Sep shipment.
  • Energy markets are mostly lower with crude oil nearly a buck lower at $54.69/barrel.
  • DJIA down 856 at 25628, S&P down 103 at 2829, NASDAQ down 309 at 7694.
  • US$ down 557 at 97.51, gold up 23 t 1472 as investors seek a safe haven for their money, and the CD$ down slightly at 0.7569.

Continuous Gold Chart 


DJIA chart

 

 Corn

Corn prices were lower overnight on technical selling from last week’s weakness. Prices turned higher midday on cool/wet weather forecasts for much of the WCB and southern areas. Concerns are rising about how much damage could occur from the adverse weather conditions. Conditions remain mostly warm and dry in the ECB. 

  • Closes: September $4.05 ¼, down 5 ¾ cents, December at $4.14 ¾, down 5 ¼ cents, July at $4.34 ½, down 3 ¾ cents and red Dec at $4.15 ¼, down 3 ¾ cents.
  • Weekly export inspections came in at 631 tmt, near the low end of the trade estimates.
  • Crop conditions are expected to decline 1% to 57% G/E. This is where we were at 2 weeks prior.
  • IEG Vantage pegs the US corn yield at 167.8, with total production at 13.8857 billion bushels. Their acreage was left unchanged at 90.7 million acres. The USDA was last at 91.7 million acres planted.
  • Spreads: U/Z 9 ½ carry, Z/H 10 ¼ carry, Z/N 19 ¼ carry, N0/Z0 19 inverse. 

Oilseeds

Prices opened lower from increased trade war tensions.  Prices turned higher midday on cool/wet weather conditions across the WCB.  Gains were limited from news of China suspending all purchases of US goods and a weaker currency in Brazil. 

  • Closes: November at $8.68 ¾, up ¼ cent, July at $9.16 ¾, down ½ cent and red Nov at $9.28 ½, unchanged. The products were mixed with meal up 2-3 bucks and oil down 43 points.
  • Weekly export inspections came in at 1.0 mmt in line with trade estimates. Over 50% were said to be slated for China.
  • Crop conditions are expected to decline 1% to 53% G/E. This is where we were at 2 weeks prior.
  • IEG Vantage pegs the US soybean yield at 48.2, with total production at 3.823 billion bushels on 80.0 million planted acres.
  • Spreads: X/F 13 ¼ carry, F/K 23 ¼ carry, X/N 48 carry.

We got beans guys......CHS Roof Top Crop

  

Wheat

 Wheat prices were lower at the open on profit taking.  Prices turned higher midday on the rebound in the corn market.    

  • September closes: Mpls at $5.24 ¼, up 2 ¼ cents, KC at $4.25 ¼, up 3 ½ cents and Chicago at $4.94 ¼, up 3 ¾ cents.
  • Weekly export inspections came in at 395 tmt, near the low end of trade estimates.
  • Spring wheat conditions are expected to decline another percent to 72% G/E.the crop is nearing maturity and very early reports of harvest are coming in.
  • The winter wheat harvest is winding down with expectations of being reported at 84% complete.
  • IEG Vantage pegs spring wheat production at 574 mb with an average yield of 47.3.
  • Spreads: Mpls U/Z 11 ¾ carry, Z/H 13 carry, Kansas City U/Z 16 ½ carry, U/U 63 ½ carry. The MWU9 is at a 99 cent premium to the KWU9.