Afternoon Market Highlights


Highlights

Quiet day in the grain markets today. China bought another jag of soybeans, but it did little to excite the market. Chinese top officials say they plan to continue to purchase US goods and hope that traded talks can continue with more positive measures. USDA is expected to release their Small Grains Summary and their Sep 1 Grain Stocks report on Monday at 11 AM Chicago Time. The next S&D report is scheduled for October 10th at 11 AM Chicago Time.    

  • The energy markets are mostly higher with crude oil up 6 cents at $56.5/barrel.
  • The SU$ keeps marching higher, up 177 at 99.213, the gold market is 3 bucks weaker at $1,505/ounce and the CD$ is slightly weaker at 0.75445.
  • DJIA up 5 at 26975, S&P don 3at 2982 and the NASDAQ down 24 at 8052. 

Corn

The corn market retreated on disappointing weekly export sales and position squaring ahead of next week’s USDA data and end of month positioning. 

  • Closes: December at $3.72 ½, down 1 ¾ cents, July at $3.97 ½, down 1 cent and red Dec at $4.04 ¼, down ½ cent.
  • Weekly export sales were disappointing at 494 tmt.Trade estimates were 600 tmt-1.1 mmt.
  • Spreads: Z/H 12 carry, Z/N 25 ¼ carry, Z/Z 32 ¼ carry. 

Oilseeds

The soybean market retreated on technicals and consolidating type trade ahead of next week’s USDA data. The US/Chinese trade war may see a resolution sooner than expected, according to President Trump. 

  • Closes: November at $8.88 ½, down ¾ cent, January at $9.02 ¾, down ½ cent, July at $9.34 ¼, up ¾ cent and red November at $9.44, up 1 ½ cent. The products were weaker with meal down 2-3 bucks and oil down 3 points.
  • Weekly export sales were decent at 1.038 mmt and near the top end of trade estimates (800-1.3).
  • USDA announced another sale of 270k tonnes of beans to China for the 2019/20 marketing year.
  • Soybean harvest in the Northern Plains has begun this week with moisture running 11.5-12.5%.Have not heard yield reports yet.Harvest activity may get stalled out with forecasts for rain over the next few days.
  • Spreads: X/F 14 ½ carry, F/K 22 ½ carry, X/N 45 ¾ carry. 

Wheat

The wheat market was mixed with the Mpls taking a step back after rallying hard earlier in the week.  KC and Chicago turned higher on a technical bounce from recent weakness. EU wheat prices traded higher on improving world demand for wheat and borrowed strength in Chicago wheat. 

  • December closes: Mpls at $5.48 ¾, down 5 ½ cents, KC at $4.10, up 6 cents and Chicago at $4.84 ¼, up 7 cents.
  • Weekly export sales were disappointing at 283 tmt.
  • ICG leaves their world production estimate unchanged at 764.0 mmt.
  • Australia and Argentina dryness is expected to continue for the next few weeks.
  • Spreads: Mpls Z/H 13 ¾ carry, Z/Z 52 ½ carry......Kansas City Z/H 13 ¼ carry, Z/Z 60 carry (5 cents a month).