Afternoon Market Highlights


Highlights

Quiet day ahead of the signing ceremony tomorrow. More snow moving across the Northern Plains area this weekend. Temperatures are expected to dip below freezing early in the week.  The market lacks fresh supportive news for the grains. 

  • The energy markets were mixed with crude oil up 29 cents at $58.38/barrel.
  • The US$ is up 49 at 97.39, the gold market is down 3-4 bucks at $1,547/ounce and the CD$ is down slightly at 0.7655.
  • DJIA up 33 @ 28939, S&P down 1-2 at 3288 and the NASDAQ down 23 @ 9251.
  • North Dakota Grain Dealers convention is this weekend at the Holiday Inn in Fargo ND.Stop by and say hi to all the CHS folks in hospitality room 1002.     

Corn

The corn market traded slightly lower ahead of the log-awaited signing of the Phase One Trade agreement between the US and China.  Corn suffers from lack of fresh supportive news and favorable weather in South America. 

  • Closes: March at $3.89, down ½ cent, July at $4.02 ¼, down ½ cent, September at $4.02 ¼, down ¾ cent and December at $4.04 ½, down ½ cent.
  • Corn remains in a state of rangebound action for now ($3.85-$3.95).
  • There is no guarantee that China will include corn and or ethanol in their shopping list of US ag products.
  • As of the morning the funds were thought to be short just over 70k contracts of corn. The market could be vulnerable to a short covering rally should US corn make the cut.
  • Spreads: H/K 7 carry, H/N 13 ¼ carry, N/Z 2 carry. 

Oilseeds

The soybean market stabilizes prior to tomorrow’s signing ceremony in Washington D.C. SA receives beneficial rains for crop development.  Private estimates are coming in at or near record levels. Harvest is expected to begin in a few weeks. 

  • Closes: March at $9.42 ¼, unchanged, July unchanged at $9.67 ¼, November down ¼ cent at $9.69 ½.
  • The USDA announced the sale of 120k tonnes of beans to unknown destinations for 2020/21 marketing year.
  • There is no guarantee that China will buy US beans right after the signing takes place.
  • As of this morning the funds were thought to be long just shy of 2k contracts of soybeans.
  • Spreads: H/K 13 ¼ carry, H/N 24 ¾ carry, N/X 2 carry, X/F 3 carry. 

Wheat

The wheat market traded higher on continued hope of making it on China’s shopping list for US ag products. 

  • March closes: Mpls at $5.56, up ¾ cent, KC at $4.96 ¼, up 3 ½ cents, Chicago at $5.68 ½, up 6 ¼ cents.
  • Egypt bought 240k tonnes of Russian Romanian wheat.
  • Jordan is in for a jag of optional origin wheat.
  • Spreads: Mpls H/K 8 ¼ carry, Kansas City H/K 7 ¾ carry, Chicago H/K 1 ¾ carry.