Afternoon Market Highlights
11/15/2019 2:58:35 PM
- Secretary Sonny Perdue announced the second tranche of 2019 Market Facilitation Program payments will begin the week before Thanksgiving. Eligible producers will receive 25% of the total expected payment, which comes in addition to the 50% they have already received.
- CHS Hedging has a variety of educational opportunities available including Hedging Academy, Introduction to Technical Analysis, Commodity Basics, and the Energy Class. For more information, please visit www.chshedging.com.
- The signup period for CHS Pro Advantage ends on December 11th. For more information and to sign up, please click here.
- Last trading day for November feeder cattle futures and options is on November 21st.
It was a lack luster day in the corn market, with the December contract losing a nickel and closing on the low of the day. Weakness in the market stems from a lack of fresh news, and export sales that continue to put us behind the pace needed to keep up with USDA estimates. For the week, December corn lost 6 cents.
- Weekly export sales were 581,600 metric tonnes, which is within estimates of 400,000 to 800,000 metric tonnes.
- Sorghum sales on weekly export sales were the largest since December of 2017, with sales of 280,000 tonnes reported. 250,000 tonnes were sold to unknown.
- The CFTC COT report showed speculators buyers of 8,358 contracts, bringing their net short to 148,090 contracts.
- Closes: December at $3.71 ¼ down 4 ½; March at $3.80 ¾ down 4; May at $3.86 ½ down 4 ¼; July at $3.92 ½ down 4.
- Spreads: Z/H 9 ½ cent carry; H/K 5 ¾ cent carry; K/N 5 ¾ cent carry; Z/N 21 cent carry.
Soybeans traded higher today, drawing strength from positive export sales and a better than expected NOPA crush report. Towards the end of the session, excitement waned but soybeans still managed to have a green close. Meal traded higher today as well, with the December contract closing at $307.10, above its 100-day moving average of $304.50. This was the first close above the 100-day moving average in a month. For the week, January soybeans lost 12 ¾ cents.
- NOPA’s October crush showed a record high of 175.397 million bushels of soybeans were crushed, above the average trade estimate of 166.795 million bushels. Soy oil stocks were 1.423 billion pounds, slightly above estimates of 1.42 billion.
- Weekly export sales were 1,253,000 metric tonnes of soybeans, within estimates of 800,000 to 1,400,000 metric tonnes. 760,000 tonnes of the soybean sales went to China, 61% of the weeks sales. Soymeal sales were 345,300 metric tonnes, near the top end of estimates ranging from 100,000 to 350,000 metric tonnes and soyoil sales were 30,600 metric tonnes, above estimates of 5,000 to 25,000 metric tonnes.
- The CFTC COT report showed speculators flipping their position to a net short of 48 contracts, selling 26,343 contracts.
- Closes: January at $9.18 ¼ up 1 ½; March at $9.30 ¾ up 1 ¼; May at $9.42 ¼ up 1; July at $9.52 ½ up 1 ¼.
- Spreads: X/F 12 ¾ cent carry; F/H 12 ¾ cent carry; H/K 11 ½ cent carry; F/N 34 ½ cent carry.
The wheat markets were lower across the board. Minneapolis was the biggest loser, followed by Kansas City and Chicago. The weakness in wheat comes from a large global supply and disappointing U.S. exports. Additional pressure comes from spillover weakness in corn. For the week, December Chicago wheat lost 7 ½ cents, December Kansas City lost 5 cents, and December Minneapolis lost 15 cents.
- Taiwan bought 95,750 tonnes of milling wheat from the U.S. for delivery in January and February.
- Weekly export sales were 238,600 metric tonnes, which is near the low end of estimates ranging from 200,000 to 500,000 metric tonnes.
- The CFTC COT report showed speculators sellers of 5,143 contracts of Chicago wheat, bringing their net short to 34,052 contracts.Speculators bought 18,963 contracts of Kansas City wheat, bringing them to a net short of 5,961 contracts. Speculators sold 2,526 contracts of Minneapolis wheat, bringing them to a net short of 11,570 contracts.
- December closes: Chicago at $5.02 ¾ down 5; Kansas City at $4.16 ½ down 5 ¾; Minneapolis at $5.03 ½ down 9.
- Spreads: Chicago Z/H 3 ¼ cent carry; Kansas City Z/H 8 ¾ cent carry; Minneapolis Z/H 15 ½ cent carry.