Afternoon Market Highlights


Highlights

The grain markets were mostly higher on borrowed strength from the stock market and ideas that there could be a drug developed to hopefully curtail the spread of the Coronavirus. The stock market rose on expectations for another stimulus package coming from the central bank to help out the Chinese economy. 

  • Energy markets are mostly higher with crude oil up 1.59 at $51.22/barrel.
  • The US$ is up 302 at 98.26, the gold market is up 5-6 bucks at $1,558/ounce and the CD$ is up a freckle at 0.75295.
  • DJIA up 483 at 29290, S&P up 36a t 3335 and NASDAQ up 41 at 9508.
  • The USDA updated world and US balance sheets should be released on February 11 at 11 AM CST.     

Corn

The corn market lost ground this morning, retreating into negative territory for much of the session. Gains were limited form uncertainty about future export demand. Ukraine expects to see little impact on their corn exports to China because of the coronavirus. 

  • Closes: March at $3.80 ¾, down 1 ½ cents, July at $3.91, down 1 ¾ cents, September at $3.88 ¾, down ¾ cent, December at $3.92 ½, down ¼ cent.
  • Average trade estimate for weekly export sales 700 tmt -1.5 mmt.
  • Weekly ethanol production increased 52k barrels per day to 1,081,000 barrels per day. Stocks were down slightly to 23.5 million barrels.
  • Spreads: H/K 6 carry, H/N 10 ½ carry, N/Z 1 ½ carry. 

Oilseeds

Soybean prices traded slightly higher from continued strength in the equity market and soyoil. Gains were limited from waning optimism about China making any big US soybean purchases. Prices were also pressured from weakness in the soymeal market. The soybean market was up 5-8 cents early in the session but failed to hold at or above those levels. Support in the March is seen near $8.75 with resistance near $8.90.    

  • Closes: March at $8.80, up ½ cent, July at $9.07 ¼, up 1 cent, August at $9.12 ¼, up ¾ cent and November at $9.20 ¼, up 2 cents. The products were mixed with meal down 1-2 bucks and oil up 59 points.
  • CIF premiums were 1-2 firmer for Feb at 52/53 and 2 cents firmer for March at 54. Hearing there may be some interest off the PNW.
  • Average trade estimates for weekly export sales: 400-900 tmt for beans, 200-500 tmt for meal and 12-60 tmt for soyoil.
  • Spreads: H/K 13 ½ carry, H/N 27 ¼ carry, N/X 13 carry, X/F 6 carry.  

Wheat

The wheat market traded slightly higher on technicals. There is not a lot of news to provide direction either way for the wheat market. StatsCan released their December 31 grain stocks for all what at 24.982 mmt, below last year at 25.109 mmt but above the average trade estimate of 24.6 mmt.  

  • March closes: Mpls at $5.35 ¼, up 3 ½ cents, KC at $4.72, up 4 ¾ cents, Chicago at $5.62, up 4 ¾ cents.
  • Average export sales estimates are at 200-750 tmt.
  • Paris mill wheat traded higher on strength in the stocks market.
  • Spreads: Mpls H/K 9 ½ carry, Kansas City H/K 6 ½ carry, Chicago H/K 3 inverse.