Afternoon Market Highlights
8/30/2019 2:42:22 PM
The Ag markets were mostly on the defensive from deliveries, harvest pressure and lack of fresh supportive news. The soybeans did catch a slight bid on light short covering ahead of the 3-day holiday.
- The USDA is expected to release their monthly fats and oils report for July on Tuesday at 1400 hours.
- Hurricane Dorian (Cat 3) is said to be getting stronger and looks to make its move on Florida by late Monday or early Tuesday.
- Ag markets will be closed on Sunday evening and Monday in observance of the Labor Day Holiday. Trade is expected to resume on Monday evening at 1900 hours.
- Energy markets on the defensive with crude oil down 1.75 at $54.95/barrel.
- The US$ is up 357 at 98.86, the gold market is down 3-4 bucks at $1,526/ounce and the CD$ is off a freckle at 0.7511.
- DJIA down 47 at 26314, S&P down 3 at 2923, NASDAQ down 41 at 7931.
The corn market traded lower in sympathy with the wheat market and lack of fresh supportive news. Prices saw additional pressure from month end positioning and deliveries. Warmer/ drier weather conditions should help the corn crop develop.
- Closes: December at $3.69 ¾, down 1 ½ cents, July at $3.97, down ¼ cent and red Dec at $4.04 ¼, up ½ cent.
- Gulf premiums
- There were 400 corn deliveries posted against the September contract.
- Contract low in Dec 19 is at $3.63 ¾ back on May 13th. We came near that on August 28th with a low of $3.64 ¼ and we have a gap to fill between $3.92 ¾-$3.88 form back on August 18th.
- Crop conditions were reported at 57% G/E, 71% in the dough stage and 27% dented last Monday.
- Spreads: Z/H 12 ½ carry, H/K 7 ¾ carry, Z/N 27 ½ carry, Z/Z 34 ½ carry.
The soy complex finished out the week mixed with beans barely in the green (up ½ cent), meal 2-3 bucks lower and oil 27 points higher. Prices drew support from a bout of short covering ahead of the long weekend and worries that the late planted crop could get hurt by a September/October frost.
- Closes: November at $8.69 up ½ cents, January at $8.82, up ½ cent, July at $9.14 ½, down ½ cent and red November at $9.31 ¼, unchanged.
- Deliveries: 866 beans, 64 meal and 52 soyoil.
- Crop conditions were reported at 55% G/E and 79% setting pods last week.
- The average trade estimate for July soybean crush is at 178.5 mb (177.1-179.0).
- Spreads: X/F 13 carry, F/K 22 ¼ carry, X/H 25 ¼ carry, X/N 45 ½ carry.
The wheat market appears to have a problem. Mpls wheat, Kansas City and Paris milling wheat are all at contract lows, with Chicago 8-12 cents above contract lows. Need we say more? Spring wheat harvest has resumed and should be good to go for the next few days. The winter wheat areas have received beneficial moisture for planting the next crop, of winter wheat, come mid-September to early October.
- December closes: Mpls at $4.96 ¾, down 4 ¾ cents, KC at $3.95 ¼, down 6 ¼ cents and Chicago at $4.62 ½, down 10 ¼ cents.
- Bids rolled to basis the Dec.
- Deliveries were big across all three classes of wheat (Mpls 666, KC 1,000 and Chicago 440).
- Spring wheat harvest was reported at 38% complete through last Sunday.Tuesday is expected to show harvest at 55-65%.
- Spreads: Mpls Z/H 13 ¾ carry, Z/Z 59 ½ carry.....Kansas City Z/H 16 ¼ carry, Z/Z 69 carry (5 ¾ cents per month).