Afternoon Market Highlights


Highlights

The grain markets were mixed with corn higher on fear of a big freeze later this week for much of the Corn Belt. Soybeans struggled uncertainty about this week’s trade talks. Ideas are that results of the trade talks will be much the same as the other trade talks over the last year and a half. The USDA October data is expected to be released on Thursday. The October FSA numbers are thought to be released Thursday afternoon (after the 11 AM USDA data).     

  • The energy markets are mostly higher with crude oil up 24 cents at $53.05/barrel.
  • The US$ is up 161 at 98.97, the gold market is down 14-15 bucks at $1,495/ounce and the CD$ is up 0.00085 at 0.75230.
  • DJIA down 34 at 26539, S&P down 4 at 2947 and NASDAQ down 12 at 7970. 

Corn

The corn market traded slightly higher on crop worries from forecasts calling for a bunch of cold and snowfall across the Dakotas and western Minnesota later this week. Position evening was noted as market participants ready themselves Thursday’s USDA crop production and S&D report. 

  • Closes: December at $3.87, up 2 ¼ cents, July at $4.08 ¼, up 2 ½ cents, September at $4.02 ¼, up 1 ¾ cents and red Dec at $4.06 ½, up 2 ¼ cents.
  • CIF premiums were 2 cents firmer for October.
  • Weekly export inspections came in at 467 tmt. This compares to trade estimates between 500-700 tmt.
  • Harvest progress is thought to be 19% complete as of Sunday, October 6. Conditions are estimated to be unchanged at 57% G/E.
  • Spreads: Z/H 12 carry, H/K 5 ½ carry, Z/N 20 ¾ carry, Z/Z 19 ¼ carry. 

Oilseeds

Soybeans traded both sides but finished the day in negative territory.  The market seems to be in a wait and see mode ahead of the US/Chinese trade talks later this week. 

  • Closes: November at $9.15 ¼, down 1 cent, January at $9.29 ½, down ¾ cent, July at $9.59, up ¾ cent, red November at $9.62 ½, down ¼ cent. The products were mixed with meal down 1-2 bucks and oil up 22 points.
  • Weekly export inspections were reported at 1.04 mmt.
  • The USDA announced the sale of 198k tonnes of beans to China and 240k tonnes of bean to an unknown destination for the 2019/20 marketing year.
  • Harvest progress is thought to be 15% complete as of Sunday, October 6. Conditions are estimated to be unchanged at 55% G/E.
  • Spreads: X/F 14 ¼ carry, F/K 20 ½ carry, X/N 43 ¼ carry.  

Wheat

The wheat market was mixed with Mpls higher on concerns of tightening supplies of good quality protein wheat.  Chicago and KC saw pressure from technical selling and lack of fresh supportive news. There is a fair amount of wheat left to harvest in the Canadian Prairies and the unharvested wheat in North Dakota and Montana is expected to be poor quality and may not ever get harvested. 

  • December closes: Mpls at $5.38 ½, up 2 ½ cents, KC at $4.02 ½, down 1 ½ cents and Chicago at $4.89 ¼, down 1 ¼ cents.
  • Weekly export inspections came in at 385 tmt (112 Hard Red Spring, 39 Hard Red Winter, 63 Soft Red Winter, 12 Hard White, 105 Soft White and 55 Durum). This compares to trade expectations for 400-600 tmt.
  • Russia’s winter wheat seedings are estimated at 77% complete with rain events expected to come within the next couple of weeks.
  • Winter wheat planting is expected to be 54% complete and spring wheat harvest is expected to be 94% complete.
  • Egypt’s GASC is in the market for optional origin wheat for LH Nov shipment.
  • Spreads: Mpls Z/H 13 ¾ carry, Z/Z 48 ¾ carry, Kansas City Z/H 14 ¾ carry, Z/Z 60 carry.