Afternoon Market Highlights


Highlights

The grain markets saw a nice finish to the week, closing higher across corn, beans and wheat. Corn took a beating early in the week on much bigger stocks than what the trade had been expecting. China plans to source their remaining needs for the year from South America rather than the US. Much of the Upper Midwest is expected to encounter more rain over the weekend, which should be beneficial to the corn and bean corn.  Spring wheat harvest could see some delays until mid-next week.     

  • September options expire at the close on Friday, August 23rd. First Notice Day for September futures is Friday, August 30th with all long positions reported after the close on August 29th.

  • The energy markets are mostly stronger with crude oil trading just shy of $55/barrel.

  • The US$ holds strength going into the weekend up 59 at 98.20, the gold market is off 7-8 bucks at 1513 and the CD$ is up 285 at .7538.

  • DJIA is up 306 at 25886, S&P up 43 at 2891 and NASDAQ up 129 at 7895.

  • The corn and soybeans tour kicks off next week.  CHS Hedging will have a couple of scouts on the tour.

 

Corn

Corn prices turned higher on a bout of short covering after dropping to more than three year lows earlier in the week.  The market appeared to be viewed as being overdone. The market awaits results of the upcoming crop tour. 

  • Closes: September at $3.71, up 10 ¼ cents, December at $3.80 ¼, up 9 ¾ cents, July at $4.05 ¾, up 8 cents and red Dec at $4.08 ½, up 5 cents.

  • Gaps remain in tack in the September from $3.79-$9.85 ¼ and in the Dec from $3.88-$3.92 ¾.

  • The December corn dipped down to $3.69 this week with its contract low sitting at $$3.63 ¾.

  • Spreads: U/Z 9 ¾ carry, Z/H 12 carry, Z/N 24 ¾ carry.

 

Oilseeds

Soybean prices traded higher as bargain buyers emerged along with signs of improving demand. Uncertainty continues over the ongoing trade war with China and how and when it will get resolved. 

 

  • Closes: November $8.79 ¾, up 9 cents, January at $8.93 ½, up 9 ¼ cents, July at $9.28, up 9 cents and red November at $9.38 ¼, up 9 ¼ cents.

  • The USDA announced the sales of 297k tonnes of beans to an unknown destination for the current marketing year. There are three weeks left in the current marketing year.

  • The Upper Midwest is expected to receive another rain event over the weekend, which should be beneficial for the developing soybean crop.

  • Spreads: X/F 13 ¾ carry, F/K 24 carry, X/N 48 ¼ carry.  

 

 

 

Wheat

Wheat prices were supported on short covering and strength in the corn market, with gains limited from continued strength in the US$ and plentiful world supplies of wheat. Spring wheat harvest tried to get underway this week but was halted by scattered rains across the Northern Plains throughout the week.

 

  • September closes: Mpls at $5.06 ¼, up 3 ½ cents, KC at $3.94 ¾, up 5 cents and Chicago at $4.70 ¾, up 1 ¾ cents.

  • The wheat market looks to take direction from the corn market and spring wheat harvest progress.

  • Spreads: Mpls U/Z 12 carry, Z/H 14 ½ carry, U/U 58 carry.......Kansas City U/Z 15 carry, U/U 66 ½ carry. Given the pattern of the KC U/Z so far, I would not expect to see an increase or decrease in current storage rates for KC or Chicago.