Afternoon Market Highlights
10/1/2019 3:45:26 PM
The Ag markets were mostly higher today on leftover fuel from USDA’s stocks data released yesterday. Weather continues to be a concern most everywhere with the US remaining captive of cool wet conditions and South America strapped with mostly dry weather with chances for moisture in the southern areas.
- The energy markets are mixed with crude oil down 46 cents at $53.61/barrel.
- The US$ strength continues despite today’s setback.US$ down 252 at 99.12, the gold market is 12-13 bucks stronger at $1,481/ounce and the CD$ is up slightly at 0.7583.
- DJIA down 250 at 26622, S&P down 37 at 2941 and the NASDAQ down 76 t 7923.
- Weekly ethanol production estimates are expected to be released tomorrow around 10 AM Chicago Time.
Corn prices continued their move to higher levels on crop concerns and left over fuel from yesterday. Crop development should continue slowly with the fall season among us and lack of measurable heat units.
- Closes: December at $3.92 ½, up 4 ½ cents, July at $4.11 ¾ up 3 ¼ cents, September at $4.05 ½, up 1 cent and red Dec at $4.08, down ¼ cent.
- The December hit $3.92 ¾ for a high today, filling the gap from $3.88-$3.92 ¾ back in August. The next target could be $4.
- Spreads: Z/H 12 carry, Z/N 19 ½ carry, N0/Z0 3 ¼ inverse.
Soybean prices traded higher again on hopes for more Chines soybean business this week and unfavorable weather conditions for resuming harvest activity. Prices drew additional support from yesterday’s USDA stocks data.
- Closes: November at $9.19 ½, up 13 ½ cents, January at $9.32 ½, up 13 cents, July at $9.56 ½, up 9 ½ cents, and red November at$9.60 ½, up 6 ¼ cents. The products were mixed with meal up over eight bucks and oil sixteen points weaker.
- Gulf premiums were 2 cents weaker for October and 3 cents weaker for November.
- The USDA reports 178.0 million bushels of soybeans crushed during the month of August. This compares to the average trade estimate at 179.0 million bushels.
- Brazil’s soybean exports for September 2019 came in at 4.45 mmt versus 4.56 mmt for September 2018.
- The canola market traded higher harvest delays, uncertainty of crop losses and strength in the US soy complex.
- Spreads: X/F 13 ¼ carry, X/N 37 carry, F/K 16 ¼ carry.
The wheat market was mixed with Mpls taking second fiddle to the strength in the row crops. KC saw weakness on planting progress and Chicago garnered support from the corn market. Active spread trade was noted across the wheat market with the MWZ losing ground against the KWZ. Mpls sits at a $1.22 ¾ -cent premium to KC in the December contract. The spring wheat harvest make take a while to get going again after the weekend rain and snow events have saturated fields.
- December closes: Mpls at $5.33, down 11 cents, KC at $4.10, down 5 cents and Chicago at $4.98 ¾, up 3 cents.
- Paris mill wheat was slightly higher on weakness in the Euro, encouraging hopes for increased exports.
- Egypt’s GASC is in the market this afternoon for a jag of optional origin wheat for November shipment.
- Spreads: Mpls Z/H 14 ½ carry, Z/Z 49 ¾ carry, Kansas City Z/H 12 ¼ carry, Z/Z 57 carry.