Afternoon Market Highlights


Highlights

Choppy day in the grain markets ahead of First Notice day and month-end positioning. The US oil and corn industries are said to be in battle with each other over the use of biofuels as noted in America’s biofuels policy. Prices saw underlying support form uncertainty about the future export tax structure, in Argentina, with the newly elected president over the weekend.     

  • Federal Reserve meeting today and tomorrow with release of meeting minutes expected tomorrow afternoon.
  • FND October 31st with long positions being reported after the close on the 30th.
  • USDA S&D report is scheduled for release on November 8 at 11 AM Chicago Time.
  • Energy markets are mixed with crude oil down 39 cents at $55.42/barrel.
  • The US$ remains on the defensive, down 0.061 at 97.70, the gold market is down 4-5 bucks at $1,491/ounce and the CD$ is softer, down 0.00215 at 0.7638.
  • DJIA down 20 at 27072, S&P down 1 at 3035 and the NASDAQ down 47 at 8278. 

Corn

Corn prices traded slightly higher on lack of country movement, slowed harvest activity from unfavorable weather conditions across much of the US Midwest.  Forecasts call for snow later this week across parts of the US Midwest. Cash markets appear to be firming up and spreads are narrowing in. 

  • Closes: December at $3.86 ¼, up 2 ¼ cents, July at $4.08 ¾, up 1 ¼ cents, September at $4.02 ½, up 1 ¼ cents, red December at $4.06 ¼, up ¾ cent.
  • Gulf premiums were stronger for Oct/Nov.
  • Spreads: Z/H 9 ½ carry (keeps sneaking in), H/K 6 ¾ carry, Z/N 22 ½ carry, Z/Z 19 ¾ carry.  

Oilseeds

Soybeans prices opened higher on continued hopes of Chinese business and/or a final contract for signing at the mid-November Summit meeting. Prices waned on midday chatter that a deal may not get done in time for signing at the Summit meeting. Lack of new Chinese purchases of US soybeans also weighed on the soybean market. 

  • Closes: November at $9.18 ¼, down 2 ½ cents, January at $9.33 ½, down 2 cents, July at $9.68 ¼, down ¾ cent, red November at $9.71, up ¼ cent.
  • Gulf premiums were stronger for Oct/Nov.
  • The canola market traded lower on slowed demand, a bout of technical selling and spillover weakness in the US soybean market. Prices drew additional pressure after failing to hold above its 50-Day MA of 451.70.
  • Brazil soybean areas are seeing a bit more rain events this week, which is said to have stepped up the planting pace.
  • Spreads: X/F 15 ½ carry, F/K 24 carry, X/H 28 carry, X/N 50 carry (back to where we were the end of August-early September). The widest has been a 51 ¾ cent-carry. 

 SX9/SN0 Spread Chart


Wheat

The wheat market was mixed with the KC market trading in positive territory against Mpls and Chicago.  Choppy trade is expected as positions get squared away ahead of first notice day and the end of the month. HRW basis has firmed up recently and while the mills are thought to be pretty well supplied with wheat, there seems to be that somebody that will pick up additional supplies just because it’s relatively cheap. 

  • December closes: Mpls at $5.25 ¾, down 2 cents, KC at $$4.19, up 2 cents, Chicago at $5.11 ½, down ½ cent.
  • Egypt’s GASC bought 235k tonnes of Romanian (60k), French (60k) and Ukraine (115k) wheat.
  • Ethiopia postponed their 600k tonne wheat tender from October to mid-November.
  • Spreads: Mpls Z/H 15 carry, Z/Z 51 ¾ carry, Kansas City Z/H 12 ½ carry, Z/Z 55 carry, Chicago Z/H 6 carry, Z/Z 35 carry.