Afternoon Market Highlights


Highlights

Corn and beans were softer most of the day, on outside influences. There are concerns about the fate of the global economy. Rain events are expected to move across the US Midwest over the next several days. Crude oil was sharply lower on a bigger than expected build in inventories.      

  • Energy markets are weaker with crude oil nearly 2 bucks lower at $55.12/barrel.

  • US$ up 192 at98.00, gold up 14-15 bucks at 1518 and CD$ a tad weaker at 7515.

  • DJIA down 679 at 25600, S&P down 87 at 2844, NASDAQ down 219 at 7796.

 

Corn

Prices traded lower, on global economic concerns, while big ending stocks forecasts continue to lurk over the market.  December corn leaves an unfilled gap between $3.88-$3.92 ¾.  

  • Closes: September at $3.57, down 7 cents, December at $3.70 ½, down 6 ¼ cents, July at $3.97 ½, down 7 cents and red Dec at $4.02 ¾, down 5 ¼ cents.

  • Weekly ethanol production was reported at 1, 045,000 barrels per day, an increase of 5k barrels per day.

  • The average trade for weekly export sales is at 200-700 tmt.

  • Spreads: U/Z 11 ¼ carry, Z/H 13 ¼ carry, Z/N 27 ½ carry, N0/Z0 4 ½ carry.

 

Oilseeds

Soybeans traded lower in sympathy with the sharp drop in the crude oil market.  Prices were also pressured from a bout of profit taking after yesterday’s rally. November beans fell short of its 30-Day MA of $8.96 with the day’s high at $8.93 ½.  

  • Closes: November at $8.78, down 11 cents, July at $9.25 ¾, red November at $9.35 ¾, down 10 ¾ cents. Products were mixed with meal down nearly 5 bucks and oil unchanged.

  • The average trade estimate for weekly exports sales is at: 150-700 tm for beans, 175-400 tmt for meal and 8-32 tmt for soyoil.

  • NOPA soybean crush estimate for July is at 155.826 million bushels (149.535-170.600). This compares to 148.843 million bushels crushed in June.

  • The canola market traded higher on weakness in the CD$.

  • Brazil officials plan to re-evaluate the Brazilian soybean production for years 2017/18 and 2018/19.  There are thoughts that inventories versus exportable supplies may be out of alignment (that production possibly does not allow for expected exports).

  • Spreads: X/F 13 ½ carry, F/K 23 ½ carry, X/N 47 ½ carry.

 

Wheat

Wheat prices turned higher on a technical bounce, despite continued weakness in the corn market.  Prices could also be supported from the slow start of this year’s spring wheat harvest.  

  • September closes: Mpls at $5.05 ½, up 2 ¼ cents, KC at $3.85 ¾, up 2 ¼ cents and Chicago at $4.73 ¾, up 1 ¾ cents.

  • Average trade estimate for weekly export sales is at 200-500 tmt.

  • Egypt’s GASC tenders for optional origin wheat for LH Sep.

  • Rain events across the Northern Plains delays the start of the spring wheat harvest. More chances for rain is expected later this week or this weekend.

  • Spreads: Mpls U/Z 12 carry, Z/H 15 ¼ carry......Kansas City U/Z 16 carry, U/U 66 ¾ carry.