Afternoon Market Highlights
11/26/2019 4:34:44 PM
The US and China are thought to be within striking distance of getting the Phase One agreement a done deal. Lots of quiet today, ahead of the Thanksgiving Day Holiday. The USDA is scheduled to release their Fats and Oils report for October on Monday. The average estimate for beans crushed in October is at 186.1 million bushels (184.9-187.5). This compares to 162.3 mb crushed in September and 183.5 mb crushed last year at this time.
- Ag markets closed Wednesday night and Thursday. Trade resumes Friday at 830 AM Chicago Time.
- The energy markets are mostly higher with crude oil up 31 cents at $58.32/barrel.
- The US$ is down 71 at 98.25, the gold market is up 4-5 bucks at 1461 and the CD$ was last at 0.75325.
- DJIA up 55 at 28121, S&P up 11 at 3143 and the NASDAQ up 15 at 8647.
The corn market traded lower in sympathy with soybeans, and technical selling. Losses were limited from winter storm forecasts for the Upper US Midwest this week and weekend. Farmers are not engaged in selling at current price levels.
- Closes: December at $3.67 ½, down 3 cents, July at $3.89 ½, down 2 ½ cents, September at $3.89, down 2 ½ cents and red December at $3.93 ¼, down 2 ¼ cents.
- Gulf premiums were 1 cent weaker at 56/59 for December.
- Deliveries against the December contract are expected to be zero.
- Brazil’s 2019 corn exports through better part of November are at 36.7 mmt. This compares to the USDA at 36.0 mmt. Total exports are expected to reach 41.0 mmt.
- Harvest delays expected from adverse weather conditions.
- Taiwan and South Kore are in for a jag of corn this week.
- Spreads: Z/H 10 ¾ carry, Z/N 21 ¾ carry, Z/Z 25 ¾ carry, H/K 5 ¾ carry, H/N 11 carry.
The soybean market retreated on export competition from Brazil, favorable weather conditions for SA and technical selling ahead of the holiday on Thursday.
- Closes: January at $8.84 ¼, down 8 ¼ cents, July at $9.26, down 7 ¼ cents, November at $9.34 ¼, down 7 ½ cents. The products were weaker with meal down 3-4 bucks and oil down 22 points.
- Gulf premiums were mostly steady for Dec.
- Brazil’s soybean exports climb to 68.7 mmt through the better part of November. This compares to the USDA at 76.0 mmt.
- Spreads: F/H 14 ½ carry, F/K 29 carry, F/N 41 ½ carry, N/X 8 ¼ carry.
The wheat market was on the defensive from lack of fresh supportive news, in modest volume. Active spread trade was noted as December positions got rolled to the deferred months ahead of First Notice Day. Prices saw additional pressure from a bout of profit taking after yesterdays’ rally. Losses were limited from concerns about the snow storm moving across the wheat areas this week and weekend.
- December closes: Mpls at $4.94, down 4 ¼ cents, KC at $4.32 ¾, down 2 ¾ cents and Chicago at $5.30 ¼, down ¾-cent.
- Minimal deliveries are expected against the December Chicago wheat contract with strong cash markets.
- Duluth stocks declined 550k bushels and Mpls stocks declined 362k bushels.
- Spreads: Mpls Z/H widened out to an 18-cent carry, Kansas City Z/H settled unchanged at a 9 ¾ cent carry and the Chicago Z/H closed at a 2 cent carry after hitting a ¾ cent inver earlier in the day.