Afternoon Market Highlights


Highlights

The grain markets see-sawed back and forth on uncertainty about the size of the US corn and soybean crops.  Hopes for additional purchases form China led the markets higher in early trade. Ideas are that the additional Chinese business could include corn, wheat, sorghum and possibly even some DDG’s. Weather forecasts suggest a drier pattern to develop over the Northern Plains for the next several days.     

  • The next USDA S&D report is scheduled for November 8 at 11 AM Chicago Time. The USDA is expected to reflected potential crop/yield losses for corn/ beans and spring wheat in the November report.
  • CHS Hedging is offering an “Introduction to Technical Trading” class on January 10th and “Energy Hedging I & II” classes on January 23rd at the Inver Grove Heights office.Check the website for registration and agenda at www.chshedging.com.
  • The energy markets are mixed with crude oil trading 90 cents higher at $54/barrel.
  • US$ up 168 at 97.49, the gold market is 2-3 bucks higher at 1487 and the CD$ is off a freckle at 0.7638.
  • DJIA down 40 at 26788, S&P down 14 at 2992, NASDAQ don 59 at 8104. 

Corn

Corn prices drew support from a slower than expected harvest pace and lack of selling interest. Gains were limited from lack of demand and spillover weakness in the wheat market. 

  • Closes: December at $3.88, up ¾ cents, July at $4.13, unchanged, September at $4.05, up ¼ cents, red December at $4.09 ½, up ½ cent.
  • Forecasts for a turn to more favorable weather is expected to dry out fields and allow harvest to pick up.
  • Moisture in the corn crop is running anywhere from 20-40% depending on location.Much of the corn in the Northern Plains could end up staying in the fields for the better part of the winter or until springtime.
  • First blush for the 2020 corn acreage was reported at 95.0 million acres and Dec 20 corn futures are between $4.07-$4.11. Is that a match.With another really wet spring there could be another year with a significant amount of prevent plant.
  • Spreads: Z/H 12 carry, Z/N 24 ¾ carry, Z/Z 21 ½ carry, H/K 7 carry, N0/Z0 3 ½ inverse. 

Oilseeds

The soybean market opened higher on news that China was looking to purchase more tariff free US soybeans. Prices retreated after not seeing any new sales announcements this morning.Prices drew additional pressure from increased farmer sales in areas that harvest activity continues.  

  • Closes: November at $9.34, up ¾ cents, January at $9.48 ½, up 1 ½ cents, July at $9.76 ¾, up 1 ¼ cents, red November at $9.73 ¼, unchanged. The products were mixed with meal down 80 cents ant oil up 37 points.
  • Forecasts suggest a drier pattern for much of the Northern Plains area over the next several days, which should allow for harvest activity to pick up again.
  • Spreads: X/F 14 ¼ carry, F/K 20 ¼ carry, X/H 25 ¾ carry, X/N 42 ¼ carry.   

Wheat

Wheat prices falter on winter wheat planting progress and another round of profit taking.  Mpls held together on hopes of improving demand for good quality protein wheat and lack of country movement. The Mpls Dec closed at its 100-Day MA of $5.39. 

  • December closes: Mpls at $5.39, up 1 ¼ cents, KC at $4.20 ¾, down 4 ¾ cents, Chicago at $5.18, down 5 ½ cents.
  • As of Sunday, there is 8% of the spring wheat left standing in the fields of Montana and 5% left in North Dakota.
  • Paris milling wheat traded higher on ideas of improving demand.
  • Jordan passed on their 120k tonne wheat tender. Tunisia and Algeria also tendered for wheat.
  • Turkey tendered for up to 190k tonnes of multiple lots of EU wheat.
  • Duluth stocks were up 173k bushels to 20.6 mb. Mpls stocks were unchanged.
  • Outstanding receipts sit at 668 contracts in Duluth and 1 in Mpls.
  • Spreads: Mpls Z/H 14 carry, Z/Z 47 carry, Kansas City Z/H 13 ¾ carry, Z/Z 55 carry. Mpls Dec premium at $1.18 over KC Dec. Chicago Dec sits at a 97-cent premium over KC Dec.