Afternoon Market Highlights
8/9/2019 3:13:46 PM
President Trump said that he was not ready to make a deal with China. The current trade war feels like it could take a very long time to either make significant progress or come to a resolution. The market is focused on the USDA report on Monday with the planted acres being the primary concern.
- The Energy markets are mostly firmer with crude oil trading up $1.86 at $54.40/barrel.
- The US$ down 1.01 at 97.50, the gold market is down 90 cents at 1498, and the CD$ is 0.00215 higher at 0.7581.
- The DJIA is down 21 at 26394, S&P down 14 at 2926 and the NASDAQ down 43 at 7995.
Corn prices were mixed on positioning ahead of the weekend and next week’s crop data. The market is focused on planted acres and the fact that there should be a significant reduction from the J/J forecast of 91.7 million acres.
- Closes: September $4.10 ¼, down ¾ cent, December at $4.17 ¾, down ½ cent, July at $4.37 ½, up 1 ½ cents and red December at $4.15, unchanged.
- Crop conditions are expected show a 1-2% decline in Monday’s crop conditions report.
- Spreads: U/Z 7 ½ carry (seems to have stalled out here for now), Z/H 10 ¼ carry, Z/N 19 ½ carry.
Soybeans prices were stronger on borrowed strength in the soyoil market, dryness across parts of the US Upper Midwest this week and position squaring ahead of Monday’s crop data. Gains were limited on fears of a seriously long tail to the current trade war with China.
- Closes: November at $8.91 ¾, up 8 ¾ cents, July at $9.37 ¼, up 8 ¼ cents and red November at $9.47 ½, up 7 ¾ cents.
- The products were higher with meal up 1-2 bucks and oil up 55 points.
- There are concerns about yield potential in this year’s soybean crop from recent dryness in parts of the US Midwest and forecasts for continued dryness over the next several days.
- Spreads: X/F 12 ¾ carry, F/K 21 ½ carry, X/N 44 ¾ carry.
The wheat market traded mixed with Mpls and KC lower and Chicago slightly higher. Choppy trade ahead of the USDA report on Monday as traders square up their positions. Spring wheat harvest is going in NW and central ND with early reports of 60 pounds, 12-15% moisture and 15 plus protein. The bulks of the harvest is expected to begin in the next week or two.
- September closes: Mpls at $5.19 ¾, down ¾ cent, KC at $4.16 ½, down 2 cents and Chicago at $4.99 ½, up 1 cent.
- Russia makes a deal with Saudi Arabia to export wheat to them.
- Argentina braces for their biggest wheat harvest in a very long time.
- Australia wheat country is still on the dry side. Last ideas were that their crop would be near 20.0 mmt.
- Spreads: Mpls U/Z 11 ¼ carry, Z/H 14 carry.......Kansas City U/Z 15 ¾ carry (narrowing in), U/U 65 ½ carry (5.4 cents per month).