Afternoon Market Highlights


Highlights

Mixed day in the grain markets with corn, KC and Chicago wheat finding support from renewed buying interest after the past few days of lower prices.  Soybeans turned lower on improving weather conditions across the Upper Midwest.     

  • The energy markets are mostly weaker with crude oil down 59 cents at $54.62/barrel.
  • The US$ up 153 at 98.14, gold up 3-4 bucks at $1522/ounce, and the CD$ steady at 0.75115.
  • DJIA up 108 at 25588, S&P up 5.75 at 2846, and NASDAQ up 3 at 7776.
  • Corn and soybean crop tour kicks off next week.CHS Hedging has two scouts on the tour that will be giving crop findings throughout the week. 

Corn

The corn market got some relief from the recent pressure on a bout of short covering. Bargain buyers emerged at the lower levels, which also helped prices rebound. Gains were limited from forecasts for rain events across the Upper Midwest the next few days. 

  • Closes: September at $3.60 ¾, up 1 ¾ cents, December at $3.71, up ¾ cents, July at $3.97 ¾, up ¼ cents and red Dec at $4.03 ½, up ¾ cent.
  • Weekly export sales were disappointing at 364 tmt.
  • Rain around the Upper Midwest is expected over the next few days and is thought to be beneficial for the developing corn crop.
  • Spreads: U/Z 10 ¼ carry, Z/H 12 ¼ carry, Z/N 26 ¾ carry. 

Oilseeds

Soybean prices were on the defensive today from rain events moving across the Upper Midwest.  Country reports the rain should be beneficial for the corn and soybeans but is a nuisance for those trying to harvest small grains. 

  • Closes: November at $8.70 ¾, down 7 ¼ cents, July at $9.19, down 6 ¾ cents, red November at $9.29, down 6 ¼ cents.
  • NOPA crush for July reported 168.093 mb crushed with meal exports at 879 tons and soyoil stocks at 1.467 billion pounds. The crush was well above trade expectations at 155.826 mb and the oil stocks were well below trade expectations of 1.530 billion pounds.
  • Weekly exports sales were decent at 872 tmt for the next marketing year, despite 110 tmt cancellations for the current marketing year.
  • Spreads: X/ 13 ½ carry, F/K 24 carry, X/N 48 ¼ carry.  

Wheat

Wheat prices were mixed with Mpls lagging KC and Chicago.  Chicago found support at its 20-Day MA and KC saw renewed buying interest after making new contract lows yesterday. Mpls struggles with ideas of plentiful supplies, as we approach harvest and lack of decent demand. There has been no signs of Japan in the market for their weekly food tender. 

  • September closes: Mpls at $5.02 ¾ (nibbling at its recent contract low of $5.02), down 2 ¾ cents, KC at $3.90, up 5 ¼ cents and Chicago at $4.69, down 4 ¾ cents.
  • Egypt’s GASC bought 295k tonnes of Russian and Ukrainian wheat for LH Sep shipment (175k Russian and 120k Ukrainian).
  • Weekly export sales were decent at 462 tmt. Weekly wheat sales have been fairly decent for the past several weeks.
  • Scattered rain events across the Northern Plains this week has delayed spring wheat harvest until next week.More rain is expected across much of ND over the weekend.
  • Spreads: Mpls U/Z 11 ¾ cents, Z/H 15 carry, Kansas City U/Z 14 ½ carry (narrowed in a bit), U/U 66 ¼ carry, Chicago U/Z 5 ½ carry. KC gained on Mpls with the MWU9 at a 1.12 premium over KWU9.