Afternoon Market Highlights


Highlights

  • Secretary of Agriculture Sonny Perdue said today that President Trump will announce plans to boost bio fuel demand. The President’s announcement is expected to come within the next few weeks.
  • Sonny Perdue has also ordered an investigation into the recent spike in packer margins after a fire in a Tyson packing plant in Holcomb Kansas. The investigation will determine if unfair pricing practices have taken place.
  • Tropical storm Dorian was upgraded to a level 1 hurricane and could become up to a level 3 hurricane before making landfall in the U.S. this weekend.
  • The energy markets were higher today, with October crude oil trading at $55.93 up $1.01 as of 2:42 PM Central. The strength in crude oil comes from a larger than anticipated draw on U.S. crude stocks on the weekly EIA inventory report.
  • Last Trading Day for August feeder cattle futures and options is tomorrow, August 29th.
  • First notice day for September grain and oilseed futures is on Friday, August 30th. All long positions will be reported after the close tomorrow. 

Corn

The corn market found strength late in the morning based on comments made by Sonny Perdue. Additional support comes as the market made a technical bounce after coming within a penny of the contract low made in May. The bounce created an outside higher day in December corn, a bullish signal.

  • Weekly ethanol production showed an increase of 15,000 barrels per day to 1,038,000 barrels per day. Inventories had a draw of 0.4 million barrels dropping to 23.0 million barrels.
  • Weekly export sales are estimated to be between 50,000 and 250,000 tonnes of old crop and 350,000 to 800,000 tonnes of new crop.
  • Closes: September at $3.62 ¾ up 5 ¾; December at $3.71 up 4 ¾; March at $3.81 ¾ up 4; May at $3.89 ¼ up 3 ¼.
  • Spreads: U/Z 8 ¼ cent carry; Z/H 10 ¾ cent carry; Z/N 25 ¼ cent carry. 

Oilseeds

Soybeans closed higher today, drawing support from the corn market. The jump in prices today created an outside higher day on both the soybean and soymeal charts, which is a bullish signal. The November contract closed at $8.65 ¼, below the 20-day moving average of $8.71 ½.

  • The StatsCan report this morning showed canola production is estimated to be down 4.6% at 18.453 million tonnes versus 20.343 million tonnes last year.
  • Weekly export sales are estimated to be between -200,000 tonnes and 100,000 tonnes of old crop soybeans and between 350,000 and 800,000 metric tonnes of new crop soybeans. Old crop soymeal sales are estimated between 50,000 and 150,000 tonnes, new crop sales are estimated to be between 50,000 to 200,000 tonnes. Old crop soy oil sales are estimated between 0 and 10,000 tonnes, and 0 to 15,000 tonnes of new crop.
  • Closes: September at $8.52 ¾ up 6 ½; November at $8.65 ¾ up 6 ½; January at $8.79 up 6; and March at $8.92 up 5 ¾.
  • Spreads: U/X 13 cent carry; X/F 13 ½ cent carry; X/H 26 cent carry; X/N 47 ¼ cent carry. 

Wheat

The wheat markets traded lower today, with spring wheat continuing to make fresh contract lows. The weakness in wheat stems from large carryout numbers, that will continue to increase as harvest progresses.

  • The StatsCan report this morning showed total wheat production down 2.9% at 31.251 million tonnes versus 32.201 million tonnes last year. The spring wheat production number was estimated at 25.108 million tonnes, up from last year’s 23.942 million tonnes. The winter wheat production number was estimated at 1.725 million tonnes, down from last years 2.514 million tonnes.
  • Jordan purchased 60,000 tonnes of hard milling wheat from optional origins for $227.75 per tonne.
  • Turkey’s state grain board tendered for 88,000 tonnes of durum wheat from optional origins. The tender closes September 10th.
  • Weekly export sales are estimated to be between 250,000 and 700,000 tonnes.
  • December closes: Chicago at $4.75 ¼ up 1 ½; Kansas City at $4.04 ¼ down ½; Minneapolis at $5.06 ½ down 5 ½.
  • Spreads: Chicago Z/H 5 ½ cent carry; Kansas City Z/H 14 ½ cent carry; Minneapolis Z/H 14 ¼ cent carry.