Afternoon Market Highlights
8/6/2019 3:28:05 PM
Choppy day in the Ag markets on weather, technicals and lack of fresh supportive news. There are mixed opinions as to how much the crops have developed and improved during this year’s growing season. The current debate is how many acres were planted and to what commodity, along with how many acres did not get planted at all. Traded guesses for next week’s report should be coming in this week. Early guesses have some pretty big ranges.
- The energy markets are mostly weaker with crude oil down nearly a buck at $53.73/barrel.
- The US$ bounced higher, the gold market was a bit stronger and the CD$ was a tad softer.
- The equity market turned higher with the DJIA up 311 at 26029, the S&P up 46 at 2876 and the NASDAQ up 107 at 7833.
Corn prices traded slightly lower from forecast for improving weather and trade worries. Market waits for the August 12th USDA report.
- Closes: September at $4.04, down 1 ¼ cents, December at $4.12 ½, down 2 ¼ cents, July at $4.30, down 4 ½ cents and red Dec at $4.09 ¼, down 6 cents.
- Algeria bought 40k tonnes of South American corn.
- Spreads: narrowed in with the U/Z at 8 ¼ carry, Z/H 9 ¾ carry and the Z/N at 17 ½ carry.
Prices continue to trade on the defensive with improving weather conditions and the ongoing trade war with China. Crop conditions were reported at 54% G/E, which was an improvement form the previous week, so the bean crop really has done nothing since the first rating was reported.
- Closes: November at $8.65 ¾, down 3 cents, July at $9.13 ½, down 3 ¼ cents and red November at $9.26, down 2 ½ cents.
- The weather improves and the crop remains pretty stable.Some ideas a re that it will take at least another few weeks to get a better picture of yield and crop size.
- The canola market traded higher on a weaker CD$ and active spread trading, buying canola and selling soy.
- Spreads: X/F 13 ¼ carry, F/K 23 carry, X/N 47 ½ carry.
Prices traded lower on lack of demand, winter wheat and spring wheat harvest activity and weakness in the row crops. Technical selling and a rebound in the US$ provided additional pressure on the wheat market.
- September closes: Mpls at $5.22, down 2 ½ cents, KC at $4.18 ½, down 8 ¼ cents and Chicago at $4.84, don 10 ½ cents.
- Egypt bought 415k tonnes of optional origin wheat (115k Ukrainian, 240k tonnes of Russian and 60k tonnes of Romanian) for FH Sep shipment.
- Spreads: Mpls U/Z steady at 11 carry, Z/H 13 ½ carry........Kansas City U/Z 17 carry, U/U 64 ¼ carry.