Afternoon Market Highlights
9/4/2019 3:29:30 PM
- The Hang Seng stock market is up 4% after Beijing removed their extradition bill.
- The energy markets were stronger today, with October crude oil at $56.24 per barrel up $2.31 as of 2:30 PM Central.
- The next WASDE report is September 12th at 11:00 AM Central.
Corn traded lower today as it continues to set fresh contract lows. Corn disregarded the strength in wheat as the trade looked at improving crop conditions from yesterday, and little threat of frost in the extended forecast. The chart is looking oversold with an RSI of 22.86% on the December contract but the 50-day moving average has crossed below the 100-day moving average.
- South Korea’s KOCOPIA issued an international tender for 55,000 tonnes of corn.
- Algeria purchased approximately 30,000 to 40,000 tonnes of corn for $184.50 to $185.00 per tonne. The origin is likely Argentina.
- A private analyst estimates the U.S. corn crop yield at 167.71 bushels per acre using a survey that includes producers in 29 states.
- Closes: September $3.46 down 3 ¾; December $3.58 ½ down 2 ½; March $3.71 ¾ down 2 ½.
- Spreads: U/Z 12 ¾ cent carry; Z/H 13 ¼ cent carry; U/H 25 cent carry; Z/N 29 cent carry.
Soybeans traded higher today, and the November contract closed above the 20-day moving average for the first time in a month. Meal was stronger today, with the December contract closing at $298.50 up $4.50 per ton whereas oil was down 0.10 at 28.99 per pound.
- The USDA announced a flash sale this morning of 451,766 tonnes of soybeans for delivery to Mexico during the 2019/2020 marketing year.
- A USDA attaché in China sees the Chinese soybean imports at 80 million tonnes, which is below the USDA’s official forecast of 85 million tonnes.
- A private analyst estimates the U.S. bean crop at 46.13 bushels per acre using a farmer survey that includes producers in 29 states.
- Closes: September $8.62 ½ up 6; November at $8.75 ½ up 7; January at $8.89 ¼ up 7; March at $9.01 ¾ up 6 ¾.
- Spreads: U/X 13 cent carry; X/F 13 ¾ cent carry; X/H 26 ¼ cent carry; X/N 46 ½ cent carry.
Wheat bounced higher today after setting fresh lows yesterday. The strength in wheat is most likely technical, as it pauses after a major sell off.
- Japan will tender for 120,000 tonnes of feed wheat on September 11th.
- Russia’s ag ministry is predicting their 2019 wheat crop to be 75 million tonnes.
- Australia continues to experience dryness in their wheat growing regions.
- December closes: Chicago at $4.60 ¾ up 7 1/4; Kansas City at $3.84 ¼ up 2; Minneapolis at $4.93 ½ up 7.
- Spreads: Chicago Z/H 6 ½ cent carry; Kansas City Z/H 15 ¼ cent carry; Minneapolis Z/H 13 ¾ cent carry.