Afternoon Market Highlights
11/20/2019 3:48:20 PM
- Reports circulated today stating that a “phase one” of a U.S.-China trade deal may not occur until early next year.
- The USDA’s NASS reported that due to harvest delays the weekly crop progress reports will continue beyond the last scheduled report of November 25th.
- Last trading day for November feeder cattle futures and options is on Thursday, November 21st. Last trading day for December grain and oilseed options is Friday, November 22nd.
- The next Cattle on Feed report will be released Friday, November 22nd at 2:00 PM CT.
Corn was weaker today as the market continues to trend lower on a lack of fresh news. Ethanol production showed an increase today, but we’re still slightly behind the pace needed to keep up with the current USDA estimates. In contrast with corn, oats set new life of contract highs today for the December contract, trading as high as $3.19 ½ before closing at $3.13 ¾.
- Weekly ethanol production increased by 3,000 barrels per day to 1,033,000 barrels per day. This was the 8th week in a row of increases. Inventories decreased 500,000 barrels to 20,500,000 barrels, the lowest inventory in three years.
- Estimates for weekly export sales are between 400,000 to 900,000 tonnes of corn.
- Closes: December at $3.66 ¾ down 3 ¼; March at $3.77 ¼ down 3 ½; May at $3.83 down 3 ¾; July at $3.89 ¼ down 3 ¼.
- Spreads: Z/H 10 ½ cent carry; H/K 6 cent carry; K/N 6 ¼ cent carry; Z/N 22 ¾ cent carry.
Soybeans were weaker today, with the January contract closing below the 100-day moving average of $9.12 and now eyeballing $9.00 as the next support level. Weakness in soybeans comes as there continues to be concern swirling in the market place regarding a U.S.-China trade deal.
- Estimates for weekly export sales are 800,000 to 1,400,000 tonnes of soybeans, 100,000 to 450,000 tonnes of soymeal, and 5,000 to 25,000 tonnes of soyoil.
- Closes: January at $9.05 down 6 ½; March at $9.19 down 5 ½; May at $9.32 down 4 ¾; July at $9.43 ¾ down 4.
- Spreads: F/H 14 cent carry; H/K 13 cent carry; K/N 11 ¾ cent carry; F/N 38 ½ cent carry.
The wheat markets were mixed, with winter wheat mostly higher and spring wheat lower. The December Minneapolis contract is hovering just above the $5.00 mark, and now both the December and March contracts are at a discount to Chicago wheat. Both December Chicago and Kansas City wheat closed above their 20-day moving averages of $5.11 ½ and $4.23 ½ respectively.
- Jordan bought 60,000 tonnes of hard milling wheat from optional origins for $238.00 a tonne with shipment in the second half of February.
- Estimates for weekly export sales are between 200,000 to 500,000 tonnes.
- December closes: Chicago at $5.15 ½ up 3 ½; Kansas City at $4.25 ¾ unchanged; Minneapolis at $5.01 ¼ down 2.
- Spreads: Chicago Z/H 3 ¼ cent carry; Kansas City Z/H 6 ¾ cent carry; Minneapolis Z/H 14 ½ cent carry.