Afternoon Market Highlights


Highlights

Quiet day in the ag markets ahead of the UDSA’s monthly Supply and Demand report tomorrow at 11 AM CT. The US$ continues to show decent strength since the start of February (high so far today was at 98.88 and the July 2019 high was at 98.93. 

·         The US and China have said they would honor their respective commitments as detailed in the Phase One Trade Agreement. The implementation of the trade agreement is scheduled to take place this weekend.

·         CONAB is expected to update their Brazilian production estimates for corn and soybeans tomorrow morning.

·         There will be no grain markets Sunday night or Monday, in observance of the President’s Day Holiday on Monday. Trade will resume Monday evening at 7 PM CT.

·         The energy markets are mostly weaker with crude oil down 78 cents at $49.54/barrel.

·         The US$ is up 139 at 98.82, the gold market is up 6-7 bucks at $1,576/ounce and the CD$ is down 0.00105at 0.75075.

·         DJIA is up 72 at 29174, S&P up 14 at 3339 and the NASDAQ up 68 at 9589.     

Corn

Corn prices traded lower on a bout of profit taking after last week’s strength.  The corn market appears to be rangebound and in need of some fresh supportive news.  

·         Closes: March at $3.81 ¾, down 1 ¾ cents, July at $3.90 ¾, down 1 ½ cents, September at $3.89, down ½ cent and December at $3.93 ½, down ½ cent.

·         Inspections were reported at 769 tmt near the top end of the trade estimates (500-800 tmt).

·         Soybean harvest in Brazil is slower than last year, which lends some concern about the 2nd corn crop being able to get planted in a timely manner.

·         Spreads: H/K 4 ½ carry, H/N 8 ¾ carry, N/Z 3 carry. 

Oilseeds

Soybean prices traded higher on ideas of improving demand for US beans. Prices drew support from China’s announcement that they would look to reduce current tariff rates on some US ag products (including soybeans) by the end of this week. 

·         Closes: March at $8.84 ¼, up 2 ¼ cents, July at $9.10 ½, up 2 ¼ cents, August at $9.14 ¾, up 2 ¼ cents and November at $9.19 ¼, up ¾ cents. The products were mixed with meal up 2 bucks and oil down 35 points.

·         Inspections were reported at 604 tmt, below trade estimates of 700 tmt-1.4 mmt.

·         More rains for Brazil slow the bean harvest in the northern and central parts of Brazil.  A drier weather pattern expected to develop next week.

·         Spreads: H/K 12 ¾ carry, H/N 25 ¾ carry, N/X 8 ¾ carry, X/F 4 ½ carry.   

Wheat

Wheat prices trade on the defensive without a lot of fresh supportive news.  There seems to be enough routine business around to keep exports doing fairly well, despite the fact that China has reportedly ben a big buyer of Canadian, Australian and French wheat over the past weeks. Underlying support stems from reports that China plans to live up to their commitments to purchase US wheat. 

·         March closes: Mpls at $5.33 ¾, down 2 cents, KC at $4.71 ½, down 1 cent and Chicago at $5.52, down 6 ¾ cents.

·         Inspections were reported at 524 tmt, in line with trade estimates of 300-600 tmt.

·         EU wheat prices were higher on demand and weakness in the EURO. Gains were limited from weakness in the Black Sea prices.

·         Egypt’s GASC seeks 55k-60k tonnes of optional origin wheat for LH March shipment.

·         Spreads: Mpls H/K 10 carry, Kansas City H/K 6 ¼ carry, Chicago H/K ½ cent inverse.