Afternoon Market Highlights


Highlights

  • The grain and oilseed markets were mostly lower today on a lack of supportive news following the long weekend. Extended forecasts are currently showing very little risk of an early frost.
  • The U.S. Dollar index traded at the highest level since May of 2017. Meanwhile, the Brazilian Real, Argentine Peso, and Chinese Yuan have continued to weaken.
  • Lean hogs will have expanded trading limits of $4.50 per cwt tomorrow, September 4th.

 Corn

Corn traded lower today on a lack of supportive news after the long weekend. Corn managed to break the contract lows set in May, and close below those lows. Poor export inspections this morning as well as spillover weakness from wheat added pressure to the market.

  • The USDA grain crushing report showed 450.8 million bushels of corn used for fuel alcohol in July, down from 481.3 million bushels last year.
  • Crop progress showed corn conditions up 1% at 58% good to excellent, versus estimates of 56-59%. Mature corn was shown at 6% versus 20% last year and the 5-year average of 13%.
  • Weekly export inspections were 355,411 tonnes, below the estimates of 500,000 to 800,000 metric tonnes.
  • Closes: September at $3.49 ¾ down 8 ¼; December at $3.61 down 8 ¾; March at $3.74 ¼ down 8.
  • Spreads: U/Z 11 ¾ cent carry; Z/H 13 cent carry; U/H 24 ½ cent carry; Z/N 28 ½ cent carry.

Oilseeds

Beans traded lower most of the day, before coming back to close near unchanged. The early weakness was likely related to implementation of additional tariffs between the U.S. and China.  

  • The USDA fats and oils report showed soybeans crushed at 5.39 million tons in July versus 4.73 million in June and 5.37 million tons last July.
  • Crop progress showed conditions unchanged at 55% good to excellent, versus estimates of 54-57%.
  • Weekly export inspections were 1,281,426 tonnes, above the estimates of 850,000 to 1,100,000 metric tonnes.
  • Closes: September at $8.56 ½ down ½; November at $8.68 ½ down ½; January at $8.82 ¼ up ¼; March at $8.95 up ¾.
  • Spreads: U/X 12 cent carry; X/F 13 ½ cent carry; X/H 26 ½ cent carry; X/N 47 cent carry.

 Wheat

The wheat market suffered today, with Kansas City and Minneapolis wheat setting fresh contract lows. The Kansas City contract was the biggest loser today, followed by Minneapolis and Chicago. The weakness in wheat comes as harvest continues to add to large stocks, and demand remains poor.

  • Crop progress showed spring wheat harvested at 55%, versus estimates of 49-63% and 38% last week. Spring wheat conditions were 67% good to excellent versus estimates of 68-70% and last week’s 69%.
  • Starting in 2020, Brazil is expected to allow 750,000 tonnes of wheat to be imported into the country tariff free.
  • Jordan received four offers in a tender for 120,000 tonnes of milling wheat but did not make a purchase.
  • Turkey’s TMO provisionally purchased approximately 250,000 tonnes of wheat from optional origins. Reports indicate that the purchase included 120,000 tonnes of 12.5% protein at $194.40 a tonne and the remaining quantity was 13.5% protein at $196.20 a tonne.
  • Weekly export inspections were 526,049, within the estimates of 400,000 to 700,000 metric tonnes.
  • December closes: Chicago at $4.53 ½ down 9; Kansas City at $3.84 down 13 ¼; Minneapolis at $4.86 ¾ down 9 3/4
  • Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 16 cent carry; Minneapolis Z/H 16 cent carry.