Afternoon Market Highlights
8/20/2019 3:38:46 PM
Lower trade in the grain markets today with beneficial rains moving around the US Midwest. Cattle on Feed report is scheduled for Friday after the close (on feed Aug 1st 100.8%, July placements 10.1% and July marketings 106.4%). The Cold Storage report is scheduled for Thursday.
- September options expiration is at the close this Friday. First Notice Day for September futures is August 30th with all long positions reported after the close on the 29th.
- Energy markets are mostly higher with crude oil trading slightly lower at $56.34/barrel.
- US$ down 184 at 98.16, gold up 6-7 bucks at 1508 and the CD$ up a freckle at 0.75115.
- DJIA down 173 at 25962, S&P down 25 at 2898 and the ANSDAQ down 54 at 7948.
Corn prices were on the defensive from beneficial moisture moving across the US Midwest and spillover weakness in the wheat market. The corn market does not seem to be bothered by this week’s crop tour findings, despite yields estimated below last year and the three year average in the ECB’s key states.
- Closes: September at $3.59 ½, down 5 ½ cents, December at $3.68 ¾, down 5 ¾ cents, July at $3.95 ¾, down 4 ¾ cents and red Dec at $4.03 ¾, down 1 ¼ cents.
- December broke $3.70 support, with next level of support at its contract low of $3.63 ¾.
- Spreads: U/Z 9 ¼ carry, Z/H 12 ½ carry, Z/N 27 carry, N0/Z0 8 ½ inverse.
The soybean market traded higher on concerns about the size of this year’s US soybean crop. Crop conditions declined 1% over the past week and scouts on the annual crop tour are not seeing signs of an over abundant soybean crop this year.
- Closes: November at $8.68 ¼, up 1 ¾ cents, January at $8.82, up 1 ½ cents, July at $9.17 ½, up 1 cent and red November at $9.28, up 1 cents.
- The canola market traded higher on spillover strength in the EU and Malaysian oil markets.Prices drew additional support from lack of farmer selling.
- Spreads: X/F 13 ¾ carry, F/K 24 ¾ carry, X/N 49 ¼ carry.
The wheat market traded lower on plentiful world supplies, slow demand and technical selling. Spring wheat harvest has kicked in across much of North Dakota with reports of decent yields and variable protein.
- September closes: Mpls at $5.04, down 1 ½ cents, KC at $3.86 ¼, down 5 cents and Chicago at $4.60, down 5 ½ cents.
- Paris mill wheat traded lower with the September contract making new contract lows on ample world supplies and harvest pressure for the US spring wheat crop.
- Ukraine’s total wheat production is estimated at 27.7 mmt, up from 24.8 mmt last year.
- Spreads: Mpls U/Z 12 ¾ carry (time to roll if you have not already done so), Z/H 14 ½ carry (15 cents or better is a good time to roll) .........Kansa City U/Z 15 carry, U/U 66 carry.... Chicago U/Z 6 ¼ carry.