Afternoon Market Highlights


Highlights

  • U.S. Secretary of State tweeted that he is looking forward to a completed U.S. Japan trade deal at the UN General Assembly.
  • 25 Brazilian meat packing plants have received permission from Chinese authorities to export pork and chicken to China.
  • The energy markets were higher, with October crude oil trading at $58.02 up $1.51 per barrel as of 3:00 PM.
  • The next WASDE report will be on Thursday, September 12th at 11:00 AM Central.

 Corn

Corn was briefly higher today before closing lower and setting fresh contract lows. Corn looks oversold on the chart, with the RSI of December corn at 19.24%, but the warm extended forecast and looming WASDE report continue to pressure the market.

  • The USDA announced the sale of 651,670 tonnes of U.S. corn to be delivered to Mexico. 590,820 tonnes will be new crop delivery, and 60,850 tonnes will be 2020/2021 delivery.
  • Weekly export inspections were 590,013 tonnes, which was within estimates of 400,000 to 600,000 metric tonnes.
  • Crop progress showed corn ratings at 55% good to excellent versus estimates of 57 to 59%. Corn dented was 55% versus the five-year average of 77% and corn maturity was 11% versus the five year average of 24%.
  • Closes: September at $3.40 ¾ down 1 ¾; December at $3.54 ¼ down 1 ¼; March at $3.67 ¼ down 1 ½.
  • Spreads: U/Z 13 ½ carry; Z/H 13 ¼ cent carry; H/K 9 cent carry; Z/N 30 cent carry.

 Oilseeds

Beans traded both sides today before closing near unchanged. There is a lack of supportive news to help sustain gains ahead of Thursday’s report. As with corn, the weather remains non-threatening in the extended forecast.

  • Weekly export inspections were 906,029 tonnes, which was within estimates of 700,000 to 1,200,000 tonnes.
  • Crop progress showed soybean conditions at 55%, unchanged from last week. Soybeans setting pods were 92% versus the five-year average of 99%.
  • Closes: September at $8.45 unchanged; November at $8.57 ¾ unchanged; January at $8.72 unchanged.
  • Spreads: U/X 12 ¾ cent carry; X/F 14 cent carry; F/H 13 ¾ cent carry; X/N 50 ½ cent carry.

 Wheat

Wheat traded mostly higher today, with Chicago leading the way by a landslide. The December contract had an 11-cent gain. Kansas City December had an outside higher day, generally a bullish signal although the contract failed to break above the 20-day moving average of $4.00.

  • Weekly export inspections were 402,486 tonnes, which was within estimates of 400,000 to 650,000 tonnes.
  • The Australian Bureau of Agricultural and Resource Economics and Sciences has estimated their wheat crop at 19.2 million tonnes, down from the prior estimate of 21.9 million tonnes on dry weather.
  • Crop progress showed spring wheat harvest at 71% completed versus estimates of 60 to 72% and the five-year average of 87%.
  • December closes: Chicago at $4.74 ½ up 10 ¾; Kansas City at $3.98 ½ up 5 ¼; Minneapolis at $4.96 ¼ up 2 ½.
  • Spreads: Chicago Z/H 4 ¼ cent carry; Kansas City Z/H 14 ½ cent carry; Minneapolis Z/H 14 ¾ cent carry.