Afternoon Market Highlights
8/19/2019 2:17:17 PM
The Ag markets took it in the shorts today on rain events across much of the US Midwest. First blush crop reports, from the annual corn/soybean tour this week, suggest the corn and bean crops are lagging in development (evidenced by yield and pod counts). Full tour results are expected to be released on Friday sometime.
- September options expiration at the close this Friday.
- First Notice Day for September futures is Friday Aug 30th with all long positions reported after the close on the 29th.
- Energy markets are mostly higher with crude oil trading over a buck higher at $56.24/barrel.
- US$ up 205 at 98.34, gold down 17-18 bucks at 1496 and the CD$ down slightly at 0.75065.
- DJIA up 282 at 26172, S&P up 35 at 2926, NASDAQ up 117 at 8013.
Corn prices got spanked on a bout of profit taking and good rains across the US Midwest. Crop tour findings for day 1 are coming in below last year. Indications are that it is behind and needs time to mature. Prices drew additional pressure form lack of fresh supportive news, slowing demand as evidenced in this morning’s inspection figure.
- Closes: September at $3.65, down 6 cents, December at $3.74 ½, down 6 ¼ cents, July at $4.00 ½ down 5 ¼ cents, red Dec at $4.05, down 3 ½ cents.
- Weekly export inspections:
- Crop conditions expected to come in unchanged at 57% G/E.
- Spreads: U/Z 9 ½ carry, Z/H 12 ½ carry, Z/N 25 ¾ carry, N0/Z0 5 carry.
Prices got thumped today on lack of fresh supportive news. Additional pressure came from beneficial weekend rains in the ECB and ongoing trade war between the US and China. First blush of the annual corn and soy crop tour indicated that the crop is struggling with pods counts well below that of last year. Recent rain events should help with pod filling going forward. Final tour results are expected to be published on Friday sometime.
- Closes: November at $8.66 ½, down 13 ¼ cents, January at $8.80 ½, down 13 cents, July at $9.16 ½, down 11 ½ cents and red November at $9.27, down 11 ¼ cents. The products were weaker with meal down 2-3 bucks and oil down 45 points.
- Weekly export inspections: 1,158,217 mt, above trade estimates of 850 tmt.
- Crop conditions expected to come in unchanged at 54% G/E.
- The canola market trade lower in sympathy with the US soy complex.
- Spreads: X/F 14 carry, F/K 25 ½ carry, X/N 49 ¾ carry (6 cents a month).
Wheat prices were lower in sympathy with the row crops. Spring wheat harvest got delayed last week from scattered rains across the Northern Plains. Harvest is expected to begin this week sometime.
- September closes: Mpls at $5.05 ½, down ¾ cent, KC at $3.89 ¾, down 4 ½ cents and Chicago at $4.65 ½, down 5 ¼ cents.
- Weekly export inspections: 485,905 tmt, in line with trade estimates of 500 tmt.Another good week for wheat.
- Crop conditions expected to come in unchanged at 69% G/E.
- Winter wheat harvest estimated at 94% complete......spring wheat harvest estimated at 21% complete.
- Morocco is in for 576 tonnes of HRW and 345 tonnes of HAD (on credit).Tender closes in a couple of weeks.
- Spreads: Mpls U/Z 12 ¼ carry, Z/H 14 ½ carry, Kansas City U/Z 15 ½ carry, U/U 66 ¾ carry, Chicago U/Z 7 carry.Mpls gained on KC with the MWU at a 15 ¾ cent premium to KWU.