Afternoon Market Highlights


Highlights

Quiet trade ahead of the USDA S&D report tomorrow, despite strength in the soybean market. China has allowed another 1.0 million tonnes of tariff free US soybeans for Jan/Feb.  This comes after fulfilling the 10.0 mmt allotment from October. Driving around the country this week, we have seen quite a bit of corn still standing in the fields of NW Minnesota. Will be headed across the state of North Dakota for the balance of the week. 

  • USDA S&D report scheduled for tomorrow at 11 AM CT.
  • Weekly Crop Progress/Conditions reports are finished for this year. The USDA will begin their 2020 conditions and crop progress reports next April.
  • The energy markets were mostly weaker.     

Corn

The corn market slopped around in a narrow range ahead of tomorrow’s USDA data. There was a little harvest progress made last week, but the last 8% will most likely not get harvested until later this winter, as much of the balance hangs in SD, ND and MN. 

  • Closes: March $3.75 ¾, July at $3.86, September at $3.85 ¼, December at $3.99.
  • CIF premiums were mostly unchanged.
  • Harvest progress was reported at 92% complete versus 89% last week and trade estimates at 94%.
  • Frigid temps across the US Midwest this week may help in harvesting some more of the corn crop, although hearing many reports that the farmers may leave the rest for next spring.
  • Spreads: H/K 5 ½ carry, N/Z 3 ¼ carry. 

Oilseeds

Soybean prices rose on Chinese buying more US beans for J/F/M (without the 30% tariff). Jan beans have seen strength since December 2nd, climbing from $8.67 ½ to $8.99. 

  • Closes: January $8.97 ¾, July $9.38 ¾, Nov at $9.44.
  • China was said to have purchased 1-5 cargoes of US beans for Jan/Feb.
  • Weekly export inspections were reported at 1.3 mmt.
  • Spreads: F/H 14 ¾ carry, F/K 28 ½, carry, F/N 41 ¾ carry, N/X 5 carry, X/F 4 carry. 

Wheat

Wheat prices continue to drift lower on plentiful supplies and lack of demand for US wheat. Egypt’s GASC tenders for optional origin wheat for February. Trade is expecting minor changes for the US and world balance sheets. 

  • March closes: Mpls at $5.12, down 1 ¾ cents, KC at $4.30 ½, down 5 cents and Chicago at $5.24 ½, up ¾ cent.
  • Australia’s wheat production may see another haircut in tomorrow’s USDA report. Russia may see another uptick in production.
  • Spreads: Mpls H/K 9 carry, Kansas City H/K 8 ¼ carry, Chicago H/K 3 ½ carry.