Afternoon Market Highlights
12/23/2019 2:08:36 PM
Another quiet day in the grain markets, ahead of the Christmas holiday. President Trump indicated over the weekend that Phase One of the trade war will be singed “very shortly”.Merry Christmas to all and to all a good night! There will be no comments issues tomorrow afternoon. The scribes will return on Thursday.
- USDA reported all hogs Dec 1 at 103% on par with trade estimates of 102.9%. Hogs kept for marketing were as expected at 102%, kept for breeding was slightly above trade estimates at 102%. Frozen pork stocks for November was at 51.6 million pounds.
- Kazakhstan container corn heads for China by train. They were said to have peddled 1k tonnes of corn to China via 32 train containers.
- The energy markets were mostly higher with crude oil up 19 cents at $60.63/barrel.
- The US$ is a bit weaker at 97.65, the gold market is up 7-8 bucks at $1,482/ounce and the CD$ is mostly steady at 0.76085.
- Wall Street is stronger with the DJIA up 107 at 28562, The S&P up 2 at 3228 and the NASDAQ up 27 at 8952.
The corn market was quiet, with a two-cent trading range. Light volume ahead of the short trading day tomorrow and the holiday. SA weather looks good for crop development this week. The March sits between its 50-100 Day MA’s of $3.87 ½-$3.89. It got above its 100-Day but failed to hold at that level.
- Closes: March at $3.88 ¾, up 1 cent, July at $4.01 ¼, up 1 ¾ cents, September at $4.01, up 1 ½ cents and December at $4.02 ½, up ¾ cent.
- CIF premiums were mostly steady.
- Weekly export inspections were reported at 387 tmt, below trade estimates of 500-700 tmt.
- Hearing more and more reports that the balance of the corn harvest will be on hold till spring.
- Spreads: H/K 6 ½ carry, H/N 12 ¼ carry, N/Z 1 ¼ carry.
The soybean traded higher on more Chinese buying and other demand. There is a fair amount of optimism about the completion of Phase One and hope for a signing come early next year. SA weather is mostly favorable for much of SA. Argentina is nearly 75% done with their soybean planting and may hit a dry patch over the next week or so.
- Closes: March at $9.42 ½, up 4 cents, July at $9.67, up 4 ½ cents and November at $9.68 ¾, up 2 ½ cents. Nov 20 at $9.68 is not a bad place to get some sales on the books.
- CIF premiums were a penny weaker for January.
- Weekly export inspections were reported at 1.1 mmt, near the low end of the trade estimates from 1.0-1.5 mmt.
- The USDA announced the sale of 126k tonnes of US beans to China for the current marketing year.
- Last week’s sale of 221k tonnes was changed from unknown to the Netherlands and Saudi Arabia.
- Brazil and Argentina weather is mostly favorable for the newly planted bean crop.
- Spreads: F/H 8 ¼ carry, F/N 33 ¼ carry, N/X 1 ¾ carry, X/F 2 ¾ carry.
The wheat market was mixed with KC and Chicago on the defensive and Mpls scratching a ½ above unchanged. Intermarket spreading od Chicago wheat against soybeans and corn was noted. The focus is not on the grain markets this week, especially wheat. There was a bit of selling interest above $5.80 in the Dec 20 but not at $5.77.
- March closes: Mpls at $5.37 ¼, up ½ cent, KC at $4.59, down 3 ¼ cents and Chicago at $5.39 ½, down 2 ¾ cents.
- Weekly export inspections were at 578 tmt, near the top end of the trade estimates of 375-600 tmt. The by class breakdown: 245 HRS, 178 HRW, 43 SRW, 91 White and 21 HAD.
- Russian grain export prices were higher on strength in their currency and demand prior to their New Year Holiday.
- Spreads: Mpls H/K 8 ¾ carry, Kansas City H/K 8 ¼ carry, Chicago H/K 4 ¼ carry. Mpls gained on KC March with the Mpls at a 78 ¼ cent premium over KC.