Afternoon Market Highlights


Highlights

Weakness was seen throughout the grain, energy, currency and equity markets today. Technical selling was noted in most of the grain markets, despite the friendly stocks report on Monday. Weather looks tot improve for much of the US Midwest, once we get through this weekend’s rain events. Frost is thought to be less of a threat to the row crops as they continue their trek to maturity.

    

  • Weekly export sales data to be released tomorrow at 730 CDT.

  • The energy markets are mostly weaker with crude oil trading just over a buck lower at $52.53/barrel. Support is thought to be down around the $50.75 area.

  • The US$ remains strong, despite today’s weakness, the gold market was up 17-18 bucks at $1,503/ounce and the CD$ is off 0.0061 at 0.7520.

  • DJIA down 494 at 26078, S&P down 56 at 2881 and the NASDAQ down 123 at 7785.

 

Corn

Corn prices trade lower on technical selling with losses limited from the smaller than expected grains stocks number that the USDA released on Monday.  The December contract pushed high enough to fill the August gap from $3.88-$3.92 ¾ but failed to rocket its way to $4 or higher, which allowed prices to settle back a bit.

 

  • Closes: December at $3.87 ¾, down 4 ¾ cents, July at $4.07 ¼, down 4 ½ cents, September at $4.01 ¾, down 3 ¾ cents and red Dec at $4.04 ¾, down 3 ¼ cents.

  • Weekly ethanol production rebounded from the previous week with a 15k barrel per day increase to 958k barrels per day. Ethanol stocks rose 700k barrels to 23.2 million barrels.

  • Brazil farmers are said to have sold nearly 25% of their Safrinha corn crop versus sub 20% last year at this time.

  • Weekly export sales estimates is at 400-800 tmt.

  • Algeria passed on their tender for 50k tonnes of corn with too high prices cited as the reason. The range of offers was form $187.75-$195.0/ tonne.

  • Extended models suggest a warmer/drier pattern to develop after the passing of this week and weekend’s rain systems.

  • Spreads: Z/H 12 carry, Z/N 19 ½ carry, Z/Z 17 carry, N0/Z0 2 ½ inverse.

 

Oilseeds

Soybeans prices traded lower on a bout of profit taking after recent strength. Additional pressure came from a round of technical selling after the November contract failed to trade above yesterday’s high of $9.20. support in the Nov 19 contract sits near its 200-Day MA of $9.11.

 

  • Closes: November at $913 ¾, down 5 ¾ cents, January at $9.27 ¾, down 4 ¾ cents, July at $9.56 ½, unchanged and red November at $9.62 ¾, up 2 ½ cents. The products were mixed with meal down 3-4 bucks and oil up 23 points.

  • PNW premiums were stronger as exporters look to source product to fill their commitments.

  • Weekly export sales estimates: 900 tmt-1.4 mmt for beans, 50-350 tmt for meal and 20-25 tmt for oil.

  • USDA announced the sale of 464k tonnes of US soybeans to China for the current marketing year.

  • The canola market traded higher on harvest delays and worries about possible crop losses. Prices drew additional strength from technical buying.

  • Spreads: X/F 14 ½ carry, F/K 20 ½ carry, X/N 42 ½ carry.

     

 

Wheat

The wheat market was on the defensive from technical selling, lack of demand for US wheat and strength in the US$. Support in the Mpls Dec is at its 50-Day MA of $5.21, which was also today’s low.

 

  • December closes: Mpls at $5.29 ½, down 3 ½ cents, KC at $4.04, down 7 ½ cents, Chicago at $4.89, down 9 ¾ cents.

  • Egypt’s GASC bought 60k tonnes of French wheat for FH Nov.

  • Weekly export sales estimates are 200-600 tmt.

  • Australia’s 2019/20 wheat crop now estimated at 18.3 mmt versus the USDA at 19.0 mmt.  Dryness is expected to continue for the next week or so.

  • Paris milling wheat prices retreated from their 7-week highs on spillover weakness in the US wheat market.

  • Spreads: Mpls Z/H 14 ¾ carry, Z/Z 53 carry, Kansas City Z/H 13 3/ carry, Z/Z 59 ¾ carry.