Afternoon Market Highlights


Highlights

Mixed day in the grain markets with the row crops a tad higher and the wheat market steady to lower.  Chicago wheat traded higher on a small technical bounce. September options expiration is this Friday. Check your open deck for orders placed that you may not want to get filled. First Notice Day for September futures is next Friday.    

  • Energy markets are mixed with October crude oil trading down 28 cents at $55.85/barrel.
  • US$ up 104 at 98.229, gold down 3-4 bucks at 1502 and CD$ at 0.75265, up 0.0014.
  • DJIA up 240 at 26202, S&P up 34 at 2929, NASDAQ up 71 at 8020. 

Corn

The corn market traded higher, with 3 cents in the green by the end of the day.  Export demand is expected to improve with corn hovering around contract lows. 

  • Closes: September at $3.62 ½, up 3 cents, December at $3.70 ¼, up 1 ½ cents, July at $3.96 ¾, up 1 cents and red Dec at $4.05 ¾, up 2 cents.
  • Weekly ethanol production was reported at 1.02 million barrels per day, in-line with trade expectations, and the lowest figure reported over the past 3-4 months.
  • USDA announced the sale of 328k tonnes of corn to Mexico for the current marketing year. We have two week left in the current marketing year.
  • Weekly export sales are estimated from 250 tmt to 1.0 mmt.
  • CIF premiums were 3 cents firmer for August and 4-5 cents firmer for September.
  • Spreads: U/Z narrowed into a 7 ½-cent carry, Z/H 12 carry, Z/N 26 ½ carry, Z/Z 35 ½ carry, N0/Z0 9 carry. 

Oilseeds

Soybean prices traded higher on lower pod counts as reported by this week’s crop tour. Weather conditions have been favorable for bean development, although the crop could use a few heat units. Hearing from the country that the plants are still setting pods and filling. 

  • Closes: November at $8.73, up 4 ¾ cents, January at $8.86 ¾, up 4 ¾ cents, July at $9.22, up 4 ½ cents and red November at $9.32 ¼, up 4 ½ cents.
  • CIF premiums were 2 cents firmer for September.
  • Weekly export sales estimates are from 150-800 tmt.Could be a good week as inspections were pretty decent on Monday.
  • Spreads: X/F 13 ¾ carry, F/K 24 ¾ carry, X/N 49 carry. 

Wheat

The wheat market saw a slight bounce in Chicago on light technical buying.  KC and Mpls were easier with spring wheat harvest among us and ample wheat stocks available. The Mpls Sep and Dec made a new contract low today ($5.01 and $5.13 respectively). 

  • September closes: Mpls at $5.02 ¼, down 1 ¾ cents, KC at $3.87 ½, up ¾ cent and Chicago at $4.62 ½, up 2 ½ cents.
  • Japan was in for their weekly food tender this week. The bummer was that US spring wheat was on the list for only 7k tonnes versus Canadian spring wheat on the list for 51k tonnes.
  • Spreads: Mpls U/Z 12 ¾ carry, Z/H 14 carry, Kansas City U/Z 14 ½ carry, U/U 64 ¼ carry.