Afternoon Market Highlights


Highlights

Rough day in the grain markets on spillover weakness in the wheat. Trade negotiations were said to have hit a snag dealing with farm purchases. Cold weather this week allows for farmer to either harvest their crop or get some fall field work completed. Hearing more reports that farmers look to leave the corn in the field because it is not drying down and is light TW.        

  • Weekly export sales expected to be released Friday morning.
  • December options expire next week.
  • Energy markets are mostly higher with crude oil up 48 cents at $57.29/barrel.
  • US$ is slightly stronger at 98.34, the gold market is up 10-11 bucks at $1,464/ounce and the CD$ is 0.00155 weaker at 0.75485.
  • DJIA up 85 at 27774, S&P down slightly at 3091 and the NASDAQ is down 5 at 8480. 

Corn

Lower trade in sympathy with the wheat market and ideas that supplies are plentiful despite delays in this year’s harvest. 

  • Closes: December at $3.75 ¼, down 2 ½ cents, July at $3.95 ¾, down 3 cents, September at $3.92 ¾, down 2 ½ cents and red December at $3.97 ½, down 2 ½ cents.
  • Beneficial rains improve Argentina’s corn crop.Total production estimated at 425 mmt (37.5-46.7). This compares to the USDA projection of 50.0 mmt.
  • Spreads: Z/H 8 ½ carry, Z/N 20 ½ carry, Z/Z 21 ¾ carry, H/K 5 ¾ carry, H/N 11 ¾ carry, N0/Z0 1 ½ carry. 

Oilseeds

Prices were lower on disappointment in trade talks (Phase One Agreement) between the US and China. Favorable weather promotes soybean plantings in SA and development of the newly planted crop. 

  • Closes: January at $9.15 ¼, down 3 ¼ cents, July at $9.51 ½, down 2 ¼ cents, November at $9.55 ¼, down 2 cents. The products were mixed with meal up 1-2 bucks and oil down 5 points.
  • USDA announced the sale of 106k tonnes of beans to an unknown destination for the current marketing year.
  • Spreads: F/H 13 ¼ carry, F/K 25 ¼ carry, F/N 36 carry.  

Wheat

Lower trade on waning concerns of damage to the recently planted winter wheat crop from this week’s frigid temperatures. Dry weather conditions for the next week or so looks beneficial for the Australian wheat harvest. World supplies are plentiful and the US$ stays strong despite pullbacks.   

  • December closes: Mpls at $5.15 ¼, down 6 ½ cents, KC at $4.25, down 13 ¾ cents, Chicago at $5.09, down 8 cents. KC gave back nearly all it gained yesterday.
  • Egypt’s GASC tenders for optional origin wheat for FH Jan shipment.
  • Mpls and Chicago gained on KC. Mpls Dec sits at a 90 ¾-cent premium to KC and Chicago Dec sits at an 84 ¼ cent premium to KC.
  • Spreads: Mpls Z/H 15 carry after sneaking into 14 ¼ cents, Kansas City Z/H widened out to an 8 ½-cent carry, Chicago Z/H unchanged at 4 ¾-cent carry.