Afternoon Market Highlights
9/24/2019 3:38:08 PM
The Ag markets were mixed with the row crop slightly higher on technicals, hopes for improving demand and weird weather conditions around the US Midwest. Some models suggest a warming pattern to develop, which should be beneficial to the later planted corn and soybean crops, as well as dry out some of the small grain fields. There are crop quality concerns throughout many of this year’s crops form adverse weather conditions throughout the growing season. China officials still plan to meet the week of October 7th to discuss trade war issues. Chinese officials are said to be coming to the US.
- Sep 30 Small Grains Summary and Sep 1 Grain Stocks reports are scheduled for next Monday at 11 AM CDT.
- The energy markets are mostly lower with crude oil trading over a buck lower at $57.17/barrel.
- US$ turns softer, down 261 at 98.33, the gold market is up 8-9 bucks at $1,532/ounce and the CD$ is steady at 0.756.
- DJIA down 142 at 26807, S&P down 25 at 2971 and the NASDAQ down 119 at 7993.
Corn prices were higher on technical buying with gains limited from improving crop conditions. Weather forecasts suggest a warmer trend for the balance of the week in the ECB.
- Closes: December at $3.74 ¾, up 1 ½ cents, March at $3.85 ½, up 1 ¼ cents, July at $3.98, up ¼ cent, Red Dec at $4.03 ½, unchanged.
- USDA announced the sale of 200k tonnes of corn to Mexico for the current marketing year.
- Spreads: Z/H 11 carry, H/K 7 ¼ carry, Z/N 5 ½ carry, Z/Z 28 ¾ carry.
Soybean prices traded higher on hope for more Chinese soybean business. The market was higher early in the session, but prices retreated once the November contract failed to push above $8.99 and $9.00.
- Closes: November at $8.94 ¼, up 1 ¾ cents, January at $9.07 ¾, up 1 ¾ cents, July at $9.36 ½, up 1 ½ cents and red November at $9.45 ½, up 1 cent.
- Brazil soybean plantings delayed because of seriously dry soil beds. There are chances for moisture over the next week or so. Farmers are reluctant to plant before they get some much needed moisture.
- The canola market traded higher on slowed harvest activity and quality concerns in their canola crop.Wet/cool weather conditions have stalled the canola harvest, farmers reluctant sellers until they have a better idea of the quality of the crop they will be harvesting.
- China makes plans for Brazil and Argentina soymeal shipments.
- Spreads: X/F 13 ½ carry, F/K 20 ¼ carry, X/N 42 carry.
Wheat prices were mixed with Mpls trekking higher on crop quality/quantity concerns. KC and Chicago lagged Mpls on decent planting progress and ample soil moisture for the start of the development process. Losses were limited from dryness in other world countries.
- December closes: Mpls at $5.44 ¼, up 7 ¼ cents, KC at $4.04 ¼, down 2 ¼ cents and Chicago at $4.81 ¾, down 1 ¼ cents.
- Argentina and Australia’s wheat areas remain dry.
- Egypt’s GASC is in the market, this afternoon, for a jag of optional origin wheat for LH Oct/FH Nov shipment.
- The Northern Plains and Canadian Prairies suffer from too much rain on the spring wheat, durum and barley crops.
- Spreads: Mpls Z/H 11 ¼ carry, Z/Z 48 ¾ carry, Kansas City Z/H 13 ½ carry, Z/Z 60 ¾ carry. Mpls continues to gain on KC with the MWZ at a buck forty premium over KC Dec.