Afternoon Market Highlights


Highlights

Promises from the President to appease the US farmer did little to sustain an early price rally in the corn market.  President Trump announced that there would be a giant deal for the ethanol industry, which should increase the use of corn that the US farmer grows.

  • Ag markets will be closed Sunday evening and Monday in observance of the Labor Day Holiday.Trade will resume Monday evening at 7 PM Chicago Time.
  • The energy markets are stronger, with October crude oil trading at $56.63 up $0.85 as of 1:30 PM Central.
  • The US$ is stronger, the gold market is weaker and the CD$ is fairly stable.
  • Wall Street is higher with the DJIA over 300 higher at 26374, S&P up 37 at 2927 and the NASDAQ up 120 at 7977.
  • Crop progress/conditions report will be released on Tuesday at 3 PM Chicago Time and the weekly exports sales data will be delayed until Friday morning.

 Corn

Corn prices saw choppy two-sided trade ahead of the long weekend. Prices rose early on an ethanol announcement.  The oat market is seriously higher on light volume for September, and there are no limits for the contract now that September is entering delivery.

  • Closes: September at $3.59 ¾ down 3; December at $3.71 ¼ up ¼; March at $3.83 ¼ up 1 ½.
  • Weekly export sales were reported at 898 tmt, a decent number to have for the start of the new marketing year in a week.
  • The International Grains Council raised their world corn crop estimate 8 million tonnes to 1.100 billion tonnes.
  • The US could continue to face stiff competition from South America and Ukraine going forward.
  • Starting to hear hints of risk premium coming into the corn market from cool, wet weather conditions.Thoughts are that the crop has a long way to go as far as yield and maturity goes.
  • Spreads: U/Z 12 cent carry; Z/H 12 ¼ cent carry; Z/N 26 ½ cent carry.

 Oilseeds

The soybean market saw strength from concerns of cool weather across the US Midwest over the next several days. The products were mixed with meal weaker and oil a freckle higher. November soybeans broke above their 20-day moving average of $8.71 ½ briefly but failed to hold above that level.

  • Closes: September at $8.56 ¼ up 3 ½; November at $8.68 ½ up 2 ¾; January at $8.81 ½ up 2 ½; March at $8.94 up 2.
  • Weekly export sales were reported at 448 tmt, in line with trade expectations. Trade talks may resume between the US and China soon.
  • Spreads: U/X 12 ½ cent carry; X/F 13 cent carry; F/H 12 ¼ cent carry; X/N 46 cent carry.

 Wheat

Another day of fits in the wheat market.  The wheat market seems to have fewer friends with every new trading session. Mpls made new contract lows and the KC market is sitting just above contract lows (ugh!). The US continues to battle stiff competition from the Black Sea region, although we had another banner week of weekly export sales. The Mpls U/Z got pounded today as positions roll to the December ahead of First Notice Day tomorrow.

  • September closes: Chicago at $4.69 ¾ down 2 ½; Kansas City at $3.85 ½ down 6 ¾; Minneapolis at $4.80 ½ down 8.
  • Weekly export sales were decent again this week at 662 tmt (225 tmt HRW, 236 tmt spring wheat, 72 tmt SRW and 128 tmt white wheat).
  • The International Grains Council raised their world wheat production estimate 1 million tonnes to 764 million tonnes.
  • Jordan issued a tender for 120,000 tonnes of milling wheat from optional origins. The tender deadline is September 3rd.
  • Spreads: Chicago Z/H 5 ½ cent carry; Kansas City Z/H 15 cent carry; Minneapolis Z/H 15 cent carry.