Afternoon Market Highlights
1/8/2020 3:07:41 PM
Position evening took place ahead of the USD data on Friday morning. The wheat and soybean markets turned positive after tensions in the Middles East were calmer. China talks of eliminating their 10% mandate for ethanol use in vehicles for now.
- Weekly export sales are said to be delayed until Friday because of a winter storm in Washington, which resulted in the closing of the federal agencies on Tuesday.
- The energy markets are weaker with crude oil down over 2 bucks at $60.35, retreating on easing tensions in the Middle East.
- The US$ is up 294 at 97.28, the gold market is down 12 bucks at $1,562/ounce and the CD$ is down 0.0017 at 0.7673.
- DJIA up 202 at 28971, S&P up 22 at 3256 ands NASDAQ up 68 at 9137.
Corn traded lower on lack of fresh supportive news. Beneficial rains in South America’s corn area and position evening ahead of the USDA crop data, kept the corn market in a 3-cent trading range. Focus will be on the weather come April when Brazil’s 2nd corn crop is in its prime for production.
- Closes: March at $3.84 ¼, down ¼ cent, July unchanged at $3.97 ¾, September at $3.98 ¼, up 1 cent and December at $4.00 ¾, up ¾ cent.
- The USDA announced the sale of 2047k tonnes of corn sold to unknown destinations for the 2020/21 marketing year.
- Weekly ethanol production was reported at 1,062,000 barrels per day, up 4k bpd. Stocks were reported at 22.5 million barrels.
- The average trade estimate for tomorrow’s weekly export sales is at 350-700 tmt.
- Spreads: H/K 7 carry, H/N 13 ¼ carry, N/Z 2 ¾ carry.
Soybeans traded higher on easing tensions in the Middle East. There are ideas that there could be a slight reduction to the soybean balance sheet on Friday. SA extended weather maps will be the focus going forward.
- Closes: March at $9.47 ¾, up 3 ¼ cents, July at $9.72 ¼, up 2 ¾ cents, November at $9.75 ½, up 2 cents. The products were mixed with meal up 50 cents and oil down 19 points.
- China was said to have purchased SA beans ahead of signing the Phase One trade agreement (with the US) on Jan 15.
- Weekly export sales estimates: 400-850 tmt for beans, 75-250 tmt for meal and 0-25 tmt for soyoil.
- Spreads: H/K 13 carry, H/N 24 ¾ carry, N/X 3 ½ carry, X/F 4 ½ carry.
Wheat prices were higher despite getting snubbed by Egypt (in their most recent tender). There was no US spring wheat in the mix for Japan’s weekly food tender this week. Prices drew strength from easing tension in the Middle East.
- March closes: Mpls at $5.47 ¾, up 1 cent, KC at $4.80, up 5 cents, Chicago at $5.52 ¾, up 2 ½ cents.
- Egypt’s GASC bought 300k tonnes of wheat from Russia, Romania and Ukraine for LH Feb shipment between $245.45/tonne and $245.98/tonne C&F.
- Spreads: Mpls H/K 9 ¼ carry, Kansas City H/K 7 ¾ carry, Chicago at 3 ¾ carry.
- EU wheat prices were stronger, garnering support from steady export demand, spillover strength from the Black Sea Region and logistical pickles France (stemming from a month long rail strike).
- Weekly export sales estimates: 200-550 tmt.
- Spreads: Mpls H/K 9 ¼ carry, Kansas City H/K 7 ¾ carry, Chicago H/K 3 ¼ carry.