Afternoon Market Highlights


Highlights

The Ag markets got a twirl today on position squaring ahead of the USDA data dump on Monday, weather forecasts for the upcoming week and concerns of crop losses. It’s really all about the USDA and the FSA numbers.     

  • Energy markets are mostly stronger with crude oil up 1.63 at $52.72.
  • The US$ is stronger at $97.61, the gold market is 4-5 bucks weaker at $1,504/ounce and the CD$ is stronger at 0.75625.
  • DJIA is up 313 at 23620, S&P up 54 at 2935 and the NASDAQ up 162 at 8025. 

Corn

Whatever the weather? Corn prices rallied on crop concerns with a drier forecast in the mix. Gains were limited on less than ideal weekly export sales.  Position evening ahead of the weekend and Monday’s USDA data dump was noted as well.   

  • Closes: September at $4.11, up 4 ½ cents, December at $4.18 ¼, up 4 ¼ cents, July at $4.36 ¼, up 4 cents and red Dec at $4.15, up 3 cents.
  • Weekly export sales were reported at 240 tmt, below trade estimates.
  • Spreads: U/Z 7 ¼ carry (narrowing in on firming cash and farmer retention), Z/H 10 ¼ carry, Z/N 18 carry, N0/Z0 22 ½ inverse. The Sep/Dec got into a 2 ½ carry back on July 8 but closed at a 4 ½ carry.

  

 Oilseeds

Soybean prices took to the high side today on a flip in the weather outlook.  There are concerns about persistent dryness in parts of the Upper Midwest that could drag down yield prospects in the soybean crop.  Prices drew additional support from spillover strength in the soyoil pit. 

  • Closes: November at $8.83, up 16 ¼ cents, July at $9.29, up 15 ¼ cents and red Nov at $9.39 ¾, up 14 ¼ cents.
  • Weekly export sales were reported at 420 tmt for beans, 111 tmt for meal and 32 tmt for soyoil.
  • Brazil prices were stronger from weakness in their currency.Chines buyers were said to have stepped to the sidelines because of the higher prices.
  • China was said to have bought only a small parcel of US soybeans last week, in the midst of the trade war and increased tensions between the Us and China.
  • The USDA announced the sale of 135k tonnes of soybeans to the Philippines for the current marketing year.
  • Spreads: X/F 13 carry, F/K 22 ¼ carry, X/N 45 ¾ carry. 

Wheat

Wheat prices were higher with Chicago in the lead on technical buying and active spread trade. Position evening ahead of next week’s USDA data was noted, along with borrowed strength in the row crops. Chicago September traded through its 20 and 100Day MA’s of $4.96 ¼ & $4.98 ½. 

  • September closes: Mpls at $5.20 ½, down ¼ cent, KC at $4.17 ¾, unchanged and Chicago at $4.98 ½, up 10 ¼ cents.
  • Wheat had a banner week of export sales this week.Sales were reported at 488 tmt.
  • Spring wheat harvest should get underway next week.This week saw some very early cuttings with little or no reports about, quality, yield or protein levels. This week’s rain events could pose some delays to the harvest.
  • Paris wheat traded mixed with support stemming from borrowed strength in the Chicago wheat market.Prices dipped earlier on Saudi Arabia stated that they would be a bit more lenient on bug-damaged wheat, but participants seemed to take a wait and see attitude.
  • Spreads: Mpls U/Z 11 ¼ carry, Z/H 13 ¾ carry, U/U 50 ½ carry......Kansas City U/Z 16 ½ carry, U/U 68 carry (5.3333333333333/month).