Afternoon Market Highlights


Highlights

The market quietly awaits the USDA data release tomorrow at 11 AM CST. There was active selling against today’s rally in the wheat market. The annual ND Grain Dealers Convention takes place in Fargo, ND, at the Holiday Inn, on January 19-21. Make your plans now to attend and stop by the CHS hospitality room (1002). 

  • Weekly export sales out tomorrow, along with the Palm Oil production report and the USDA data on crop production, Dec 1 Grain Stocks and 2020/21 winter wheat seedings.
  • The energy markets were mixed with crude oil on the defensive, dipping below $60/barrel on ample supplies and easing Middle East tensions.
  • The US$ is up 133 at 97.43, the gold market is down 6-7 bucks at $1,553/ounce and the CD$ is weaker at 0.7651.
  • DJIA is us 196 at 28941, S&P up 10-11 at 3272 and NASDAQ up 65 at 9194.     

Corn

The corn market saw continued sell pressure on lack of fresh supportive news and ahead of tomorrow’s sales report and the USDA production and stocks reports. Brazil’s key state of Rio Grande Do Sul is expected to see some much needed moisture in the next few days. 

  • Closes: March at $3.83 ¼, down 1 cent, July at $3.96 ¾, down 1 cent, September at $3.97 ¾, down ½ cent and December at $4.00, down ¾ cent.
  • Gulf premiums were 1-3 cents firmer for January.
  • The USDA is expected to show a reduction in the US harvested acres, the South American crops and overall tighter US and world ending stocks.
  • There was chatter today about African Swine Fever near Germany’s eastern border.
  • Spreads: H/K 6 ¾ carry, H/N 13 ¼ carry, K/N 6 ½ carry, N/Z 3 ¼ carry. 

Oilseeds

The soybean market traded lower on continued fund selling ahead of the USDA data to be released tomorrow at 11 AM CST. Prices drew additional pressure from favorable SA weather and ideas of a near record crop in Brazil, along with possible upward revisions to the 2018/19 crop. 

  • Closes: March at $9.43 ¾, down 3 ¾ cents, July at $9.68 ¼, down 4 cents and November at $9.71 ½, down 4 cents.
  • Gulf premiums were mostly steady for January.
  • The soyoil market held in positive territory on borrowed strength form other edible oil markets.
  • Agroconsult pegs the 2019/20 Brazilian soybean crop at 124.3 mmt, up from CONAB at 122.21 mmt and the USDA at 123.0 mmt. Their export are estimated at 54.0 mmt versus the current USDA estimate at 76.0 mmt.
  • Brazil’s 2018/19 bean crop is being revised upward as they have exported nearly 77.0 mmt of beans during the year.
  • Spreads: H/K 13 carry, H/N 25 carry, N/X 3 ½ carry, X/F 4 ½ carry. 

Wheat

The wheat market saw renewed buying interest on ideas of a reduction in US winter wheat seedings and higher global prices. There has been some speculation that China will be a big buyer of US wheat. There has been no confirmation of that from the Chinese officials. 

  • March closes: Mpls at $5.52, up 4 ½ cents, KC at $4.90 ½, up 10 ½ cents, Chicago at $5.62 ¼, up 9 ½ cents. The products were mixed with meal down 70 cents and oil up 8 points.
  • Rumors today were that China was going to buy 5-6 cargoes of wheat or 5-6 mmt of wheat from the US after the signing of the Phase One trade agreement next week.There was no confirmation.
  • Spreads: Mpls H/K 8 ¾ carry, Kansas City H/K 7 ¾ carry, Chicago H/K 2 ¾ carry.