Afternoon Market Highlights
11/5/2019 1:59:56 PM
Choppy day in the grain markets amidst position squaring ahead of the release of the USDA production report on Friday. Plans are to have a done deal on Phase I of the trade war situation by the end of November.
- USDA crop production & S/D report scheduled for Friday at 11 CT.
- Energy markets are mostly higher with crude oil up 68 cents at $57.22/barrel.
- US$ stays strong, up 464 at 97.90, the gold market got spanked from a bout of profit taking and is currently trading down 26 bucks at $1,485/ounce. The CD$ is slightly softer at 0.7605.
- Wall Street is firmer across the board with the DJIA up 84 at 27546, S&P up 1 at 3076 and the NASDAQ up 13 at 8446.
Corn prices sag on mostly favorable harvest weather across much of the US Midwest for this and next week. Moisture is still an issue, with corn dryers humming away at their max. Market awaits fresh supportive news on the US/Chinese situation.
- Closes: December at $3.81 ¾, down 1 ½ cents, July at $4.04 ¾, down 1 ¾ cents, September at $3.98 ¾, down 1 ¼ cents and red Dec at $4.02 ¼, down 1 ½ cents.
- Gulf premiums were 1-3 cents firmer for November.
- South Korea bought a jag of corn from Ukraine for December shipment.They had a decent crop and are ready to get in the export game. USDA pegs 2019/20 production at 36.0 mmt and 2018/19 at 35.0 mmt with exports near 30.0 mmt for both years.
- Spreads: Z/H 9 ¾ carry, H/K 6 ¾ carry, Z/N 22 ¾ carry, Z/Z 20 1/ carry.
Soybean prices were weaker on positioning ahead of Friday and spillover weakness in the soyoil pit. The farmers scramble to get the balance of the crop in from the field as moisture has been coming down to more tolerable levels.
- Closes: January at $9.34 ¼, down 3 ¾ cents, July at $9.69 ¼, down 4 ¼ cents, November at $9.71 ¼, down 3 cents. The products were mixed with meal a freckle firmer and oil a freckle lower.
- The US soyoil market settled well off its high at 31.96 from a bout of profit taking after yesterday’s big run higher.
- Gulf premiums were 1 cent firmer for November.
- Farmer selling was notably increasing as harvest progresses and they are more comfortable knowing the size of their crop.
- Brazil’s weather is favorable for soybean plantings to increase. Farmers there were said to have sold less grain versus last year at this time.
- Spreads: F/H 12 ¼ carry, X/N 34 ¾ carry, X/H 25 carry.
Choppy day in the wheat market ahead of the USDA report on Friday. Pressure stems from strength in the US$, plentiful supplies and stiff competition from other world players. Prices turned higher on position squaring. KC drew support from a lower than expected planting progress number. Hearing that 89% planting could be where we end up this year on winter wheat, which could lend support to the winter wheat market over the winter months. The USDA last pegged stocks to use for HRW at 57%, SRW at 38% and spring wheat at 54%.
- December closes: Mpls at $5.26, up 1 ¾ cents, KC at $4.29 ½, up 6 ½ cents, Chicago at $5.15 ¼, up 5 ½ cents.
- Paris milling wheat prices were higher after France scored big on the Egyptian tender.
- Egypt bought 175k tonnes of French and Russian wheat (120k French and 60k Russian) for Dec/Jan shipment.
- Japan is in for their routine food tender. They are looking for 123,928 tonnes for LH Dec and Jan. The breakdown was 33k US spring wheat, 35k Canadian spring wheat along with a jag of Australian white and US white and HRW.
- Winter wheat harvest is nearing completion with plantings at 89% complete, emergence at 71% and ratings at 57% G/E.
- Duluth saw a 262k bushel reduction in stocks; from 19.774 mb to 19.512 mb. Mpls saw a 130k bushels draw to 5.272 mb.
- Spreads: Mpls Z/H 16 ¼ carry, Z/Z 55 carry, Kansas City Z/H 11 carry, Z/Z 51 carry. Kansas City continues to gain on Mpls with the Mpls Dec now sitting at a 96 cent premium to the KC Dec.