Afternoon Market Highlights
2/12/2020 2:14:51 PM
China appears to be getting their house in order with fewer virus cases detected and factories slowly moving back to operation mode. The declining number of virus cases being detected has been giving some strength to the equity market. China has not indicated they will delay or reduce their planned purchases of US ag goods.
- The energy markets are mostly higher with crude oil up 1.42 at $51.35/barrel.
- The US$ rebounded, up 323 at 99.06, the gold market is down 1-2 bucks at $1,565/ounce and the CD$ is up 0.00175 at 0.75405.
- The DJIA up 240 at 29516, S&P up 19 at 3376 and NASDAQ up 73 at 9711.
Corn prices drew support from strength in the Chicago wheat market and a bout of bargain hunter buying. The corn market continues to be rangebound ahead of next week’s Ag Forum data. Favorable weather conditions for Argentina and Brazil continue.
- Closes: March at $3.83, up 3 ¼ cents, July at $3.90 ¼, up 2 cents, September at $3.88 ¾, up 1 ¼ cents, December at $3.93, up 1 cent.
- CIF premiums were mostly unchanged.
- Weekly export sales are estimated at 700 tmt – 1.3 mmt.
- The weekly ethanol report showed a 48k bpd decrease in production to 1,033,000 barrels per day.Stocks are sitting at 24.4 million barrels, just shy of the 24.5 million barrel record set back in July of 2019.
- Basis bids steady to firmer on domestic demand......spreads stay narrow.
- Argentina’s corn crop is estimated between 48.0 & 52.0 mmt because of recent rain evets across the country.
- Spreads: H/K 4 ¼ carry, H/N 7 ¼ carry, N/Z 2 ¼ carry.
Soybean prices garner support from hopes that China will look to purchase US soybeans soon. There was some chatter that South Korea may have purchased some US soymeal.
- Closes: March at $8.92 ½, up 7 ¾ cents, July at $9.14 ¾, up 4 ½ cents, August at $9.19, up 4 ¼ cents, November at $9.21 ¼, up 2 cents. The products are firmer with meal up nearly a buck and oil up 31 points.
- CIF premiums were 3 cents firmer for February.
- Weekly export sales are estimated at 600 tmt -1.0 mmt for beans, 125-400 tmt for meal and 7-30 tmt for soyoil.
- Spreads: H/K 10 ¾ carry, H/N 22 carry, N/X 6 carry, X/F 4 carry.
The wheat market turned higher in Chicago with the emergence of bargain buyers after recent losses. Mpls lagged the KC and Chicago markets. Prices drew support from ideas that the coronavirus will be contained.
- March closes: Mpls at $5.31 ¼, unchanged, KC at $4.70 ¾, up 2 ½ cents and Chicago at $5.47 ½, up 5 ½ cents.
- Weekly export sales are estimated at 300-700 tmt.
- Paris milling wheat was steady to slightly higher on continued weakness in the Euro and decent demand.
- Spreads: Mpls H/K 9 carry, Kansas City H/K 6 ½ carry, Chicago H/K 1 carry. KC gained on Mpls with the Mpls March at a 60 ¾ cent premium to the KC March.