Afternoon Market Highlights
11/11/2019 3:17:57 PM
The Ag markets were lower in modest volume on lack of fresh supportive news. The USDA and the banks were enjoying the day off today. Everybody is expected to be back in the saddle tomorrow.
- Weekly export inspection and harvest progress reports are scheduled for tomorrow. Weekly export sales will be delayed until Friday in observance of Veteran’s Day.
- The energy markets are mostly weaker with crude oil down 33 cents at $56.90/barrel.
- The US$ is down 142 at 98.20, the gold market is 7-9 bucks weaker at $1,456/ounce and the CD$ is steady at 0.75645.
- DJIA is down 2 at 27679, S&P down 3-4 at 3087 and the NASDAQ down 16 at 8459.
- November futures expire at noon on Thursday, November 14.
- December options expire next week, November 22nd, the Thanksgiving Day holiday is November 28th, Friday, November 29th is a shortened trading day and First Notice Day for November futures is Friday, November 29th with all long positions being reported after the close on November 27th.
The corn market was on the defensive from a bout of profit taking after Friday’s rally and improving weather conditions across the US Midwest for the harvest. Weather looks mostly favorable for Brazil also. Pressure also stemmed from spillover weakness in the soy complex.
- Closes: December at $3.73 ¼, down 4 cents, July at $3.95, down 4 ¾ cents, September at $3.92 ¾, down 3 ½ cents and red December at $3.98 ¼, down 2 ¾ cents.
- CIF premiums were 2 cents firmer for November.
- The US and SA battle for world corn demand as they compete for future business.The US$ was weaker today.
- South Korea bought 65k tonnes of corn at $204.79/tonne for LH Dec/Jan shipment.CHS was said to be awarded the business form either SA or the Black Sea region.
- Harvest progress is expected to be near 65-75% complete. USDA pegged the harvest at 52% last week. progress report is expected to be released tomorrow at 3PM CT.
- Spreads: Z/H 8 ¾ carry, Z/N 21 ½ carry, Z/Z 24 ¾ carry, H/K 6 ½ carry.
The soy complex was in the dumps on lack of new Chinese business over the weekend and little or no further progress on Phase One of the current trade war situation. It seems like the Ag sector of the agreement is ready, but there still seems to be unresolved issues surrounding the intellectual property stuff. There may not be a done deal until sometime in December or possibly not at all this year. Prices drew additional pressure from last week’s USDA monthly crop production and S/D report.
- Closes: January at $9.17, down 14 ½ cents, July at $9.53 ½, down 12 ½ cents and November at $9.57, down 10 ¼ cents. The products were weaker with meal down 4-5 bucks and oil down 8 points.
- The canola market is expected to resume trade tomorrow.Could be a softer start given the weakness in the US soy complex.
- CIF premiums were 4 cents firmer for November.
- Harvest progress is expected to be near 90-95% complete. Many reports have come in that the beans are all done.
- There were 855 deliveries posted against the November contract with all being stopped. Total deliveries so far are 4,163 contracts. The November futures expire at noon on Thursday, November 14.
- Spreads: F/H 13 ½ carry, F/K 25 ½ carry, F/N 36 ½ carry.
The wheat market continues its descent to zero on lack of supportive news, stiff competition in the world market despite weakness in the US$ and ongoing technical pressure. Prices saw additional pressure from weakness in the row crops. The KC Dec did manage to claw its way back to positive territory and hold there for the balance of the session.
- December closes: Mpls at $5.15 ¼, down 3 ¼ cents, KC at $4.23 ¾, up 2 ¼ cents and Chicago at $5.05 ¾, down 4 ½ cents.
- Mpls traded in a 3-4-cent range most of the day and is currently sitting at mid-August levels.
- Spreads: Mpls Z/H 16 carry, Kansas City Z/H 7 carry, Chicago Z/H 4 ½ carry.
- The variable storage rate for KC is expected to switch back to a nickel per month, beginning with the H/K. The Z/H has spent the lion’s share of the calculation period below 50% of full carry.
- European and Russian wheat prices were weaker.
- KC gained on Mpls and Chicago with the Mpls Dec at a 93-cent premium over KC and the Chicago Dec at an 83-cent premium over KC.