Afternoon Market Highlights
1/30/2020 3:38:43 PM
Today’s headlines were mostly about the ongoing spread of the coronavirus, production shutdowns in China and neighboring country border closings. The World Health Organization has declared the spread of the Coronavirus a public health emergency across the globe.
- The energy markets are mostly weaker with crude oil down 39 cents at $52.94. Support is thought to be near $51.00/barrel.
- The US$ is down 145 at 97.84, the gold market is up 2 bucks at 1575, and the CD$ is down a hair at .7579.
- DJIA up 124 at 28858, S&P up 18 at 3289 and NASDAQ up 23 at 9298.
- There are ideas that there could be as much as 11.0 million acres going back into production this year.
Corn prices traded lower again today on uncertainty over the Chinese Coronavirus. Prices saw additional pressure from weakness in the soy complex and the wheat market. The March contract has support at $3.75. Losses were limited from a decent weekly export sales number.
- Closes: March at $3.79 ½, down 4 ¾ cents, July at $3.89 ½, down 5 cents, September at $3.87 ¼, down 4 ¾ cents and December at $3.90 ½, down 4 ¾ cents.
- Weekly export sales were solid at 1.23 mmt.
- US 2020 production estimate: 92.3 million acres planted, 84.6 million acres harvested with a yield of 176.0 and a carryout of 2.293 billion bushels. Average farm price estimated between $3.55-$3.75.
- Spreads: H/K 5 ¼ carry, H/N 10 carry, N/Z ¾ carry.
Soybean prices traded lower on record crop ideas in South America and lack of Chinese business. China was said to be shutting down some of their production lines because of the spread of the coronavirus. Russia was said to have closed their borders to China. The soy complex suffers from near a record harvest out of Brazil and Paraguay and slowing world demand.
- Closes: March at $8.76 ¼, down 16 ¾ cents, July at $9.04 ¼, down 16 ½ cents, August at $9.09 ¼, down 16 cents and November at $9.16, down 13 ½ cents. The products were sharply weaker as well with meal down nearly 5 bucks and oil down 89 points.
- Weekly export sales for soybeans were a bit disappointing at 470 tmt. Meal and oil sale were decent at 439 tmt and 29 tmt respectively.
- US 2020 production estimate: 85.5 million acres planted, 84.65 million acres harvested with a yield of 50.5 and a carryout of 577 million bushels. Average farm price is estimated from $8.80-$9.20.
- Spreads: H/K 14 carry, H/N 27 ¾ carry, N/X 11 ½ carry, X/F 6 carry.
The wheat market was mixed with Mpls pulling into positive territory by the close and KC and Chicago clawing their way back to nearly unchanged on the day. Prices slumped early in the session on the spread of the Chinese virus and fears of what might become of it. Prices drew additional pressure from spillover weakness in Russian prices. Egypt was a buyer of French wheat this week. Farmer sales have basically shut off from the weakness in board prices.
- March closes; Mpls at $5.36 ½, up ¾ cent, KC at $4.71 ½, down ½ cent and Chicago at $5.60 ½, down 1 ¾ cent.
- Weekly export sale were decent at 646 tmt.
- Egypt bought 180k tonnes of French wheat for LH March at $246.10/tonne.
- Spreads: Mpls H/K 9 carry, Kansas City H/K 7 ¼ carry, Chicago H/K 2 ¼ inverse.