Afternoon Market Highlights


Highlights

It was a very quiet day in the markets with the equity market showing some stability, the energy markets somewhat under the weather for one more day, along with a pretty low volume day in the grain markets. Weather conditions remain in the way of harvest activity in many areas. Look for a pretty quiet day again tomorrow as the market awaits the USDA crop progress report come Monday afternoon.    

  • President Trump is expected to make an announcement tomorrow on the biofuels deal.
  • The energy markets are mostly weaker with crude oil down 41 cents at $52.24/barrel.
  • The US$ down 107 at 98.19, the gold market is up 6 bucks at $1,510/ounce and the CD$ is off a hair at 7512.
  • The equity market recovers somewhat with the DJIA up 59 at26138, S&P up 23 at 2904 and the NASDAQ up 67 at 7852. 

Corn

The corn market trade action was uneventful on ideas that many in the trade are sitting low ahead of Monday’s updated harvest report. Last week’s crop progress was at 11% complete with only 43% of the crop mature and ready to be harvested. 

  • Closes: December at $3.88 ¾, up 1 cent, July at $4.08 ½, up 1 ¼ cents, September at $4.02, up ½ cent and red Dec at $4.05 ½, up ¾ cent.
  • CIF premiums were mostly unchanged.
  • Weekly export sales of 568 tmt were in line with trade estimates. The trade was looking for 400-800 tmt.
  • Wintry weather was seen moving around parts of the upper Midwest with the possibility of a couple warmer/drier days next week, followed by the return of cool temperatures.
  • Argentina’s corn planting progress was last reported near $20% complete.
  • Spreads: Z/H 12 carry (unchanged), Z/N 19 ½ carry, Z/Z 16 ½ carry. 

Oilseeds

The soybean market was on the defensive for the second day in a row on technical selling and weakness in the meal market.  Losses were limited from a decent weekly export sales number. October soyoil prices turned higher after it held above its 50-Day MA of 28.85 cents per pound.The canola market traded higher on continued harvest delays and crop quality concerns from cool/wet weather in the Canadian Prairies. 

  • Closes: November at $9.11 ¾, down 2 cents, January at $9.26, down 1 ¾ cents, July at $9.54 ¾, down 1 ¾ cents and red November at $9.61, down 1 ¾ cents. The products were mixed with meal down 2-3 bucks and oil up 74 points.
  • CIF premiums were 5-8 cents weaker for October and 2-4 cents weaker for November.
  • Weekly export sales were decent at 2.076 mmt (China accounted for about half of the total sales).
  • The USDA announced the sale of 252k tonnes of US soybeans to China for the current marketing year.
  • Spreads: X/F 13 ¾ carry, F/K 20 ¼ carry, X/N 43 carry.  

Wheat

Another day in the red for the wheat market.  Mpls Dec started the run back on Sep 3rd with a low of $4.86 ½. It ran to a high of $5.59 by Sep 26th and it closed today at $5.29 ½, after making a low of $5.24 ¼. Whew! What a ride over the last month, and here we sit today 6 ½ cents above the 50% retracement from the Sep 3rd low to the Sep 26th high (chart attached). Harvest progress this week was said to be minimal with rain, cold and snow moving around the Northern Plains and the Canadian Prairies this week. 

  • December closes: Mpls at $5.29 ½, unchanged, KC at $4.04 ¼, down 1 ½ cents and Chicago at $4.88 ¾, down ¼ cent.
  • Weekly export sales were better than last week at 329 tmt. By class, sales were reported at 127 tmt for spring wheat, 127 tmt for HRW, 74 tmt for SRW, 64 tmt for White and a minus 64 tmt for HAD).
  • The USDA announced the sale of 130k tonnes of US white wheat to China for the current marketing year.
  • Argentina’s wheat has begun in the norther area where the crop was planted early in the season.
  • Spreads: Mpls Z/H 13 ¾ carry, Z/Z 50 ½ carry, Kansas City Z/H 14 ¼ carry, Z/Z 60 carry.

Minneapolis December 2019 Spring Wheat