Afternoon Market Highlights


Highlights

Quiet day in the grain markets after a big week of selling amidst nervous jitters over the coronavirus spreading throughout China and various other countries around the world. Wall Street was under serious pressure much of the day. China is expected to return to the market next week, after their week-long Lunar New Year Holiday. Some businesses in China may remain closed until the next week. 

  • The energy markets are mostly weaker with crude oil down 55 cents at $51.60/barrel.
  • The US$ is down 464 at 97.40, the gold market is up 1-2 bucks at 1587 and the CD$ is steady at 0.7555.
  • DJIA down 540 at 28318, S&P down 59 at 3230 and NASDAQ down 120 at 9179.
  • StatsCan to release their December 31 stocks report February 5th.
  • The next USDA S&D report is scheduled for February 11th at 11 AM CST.     

Corn

The corn market traded higher on improving demand.  There have been a few sales to South Korea and Mexico this week so we could see another decent export sales number next week.Gaines were limited from weakness in outside markets and coronavirus situation. 

  • Closes: March at $3.81 ¼, up 1 ¾ cents, July at $3.91, up 1 ½ cents, September t $3.87 ¾, up ½ cent and December at $3.90 ¾, up ¼ cent.
  • The USDA announced the sale of 134k tonnes of optional origin corn for March delivery.
  • Spreads: H/K 5 ¼ carry, H/N 9 ¾ carry, N/Z ½ cent inverse. 

Oilseeds

Today marks the ninth day of losses in the soybean market on favorable weather in South America and the ongoing spread of the coronavirus around the world, especially in China. Export demand has been on the low side for much of the past few weeks.   

  • Closes: March at $8.72 ½, down 3 ¾ cents, July at $9.00 ½ cents, down 3 ¾ cents, August at $9.05 ½, down 3 ¾ cents, November at $9.12 ¼, down 3 ¾ cents. The products were lower with meal down 50 cents and oil down 69 points.
  • Global palm oil stocks are expected to decline nearly a million tonnes in 2019/20 marketing season. Stocks are tight a re are expected to stay that on into 2021.
  • Soyoil futures have seen significant weakness over the past month dropping to its lowest level since September 2011.
  • Spreads: H/K 14 ½ carry, H/N 27 ¾ carry, N/X 11 ¾ carry, X/F 6 ½ carry. 

Wheat

The wheat market traded lower on lack of fresh supportive news and waning buying interest as investors look for a safer place to park their monies. The Russian wheat crop was last estimated at a record 79.5 mmt and Ukraine’s harvest was plentiful at 28.3 mmt. 

  • March closes: Mpls at $5.33 ¾, down 2 ¾ cents, KC at $4.66, down 5 cents, Chicago at $5.53 ¾, down 6 ¾ cents.
  • The EU wheat prices traded lower, in sympathy with the Us wheat market.
  • Spreads: Mpls H/K 9 ½ carry, Kansas City H/K 7 ¼ carry, Chicago H/K 1 inverse.