Afternoon Market Highlights
2/26/2020 2:58:47 PM
The grain markets saw two sided trade with the outside markets providing some relief to the recent selloff. The equity market saw a rebound early, after the past two days of getting shellacked. The trade is still very concerned about the progression of the coronavirus around the world and what effect it will end up having on the global economy. There was a lot of two-sided trade across many of the markets.
- First Notice Day for March futures is Friday, with all long positions being reported after the close on Thursday.
- Check your open deck for orders that you no longer want to fill. Make sure all your bids are basis the month you are wanting them to be.
- The energy markets are mostly weaker with crude oil down over a buck at $48.90/barrel, failing to hold above $50/barrel.
- The US$ is up 109 at 99.07, the gold market rebounded from it lows early in the session but is still down 1-2 bucks at $1,648/ounce, and the CD$ is weaker at 0.7511.
- DJIA down 120 at 26957, S&P down 7-8 at 3125 and NASDAQ last up 6-7 at 8979.
The corn market saw a choppy trade day with strength stemming from bargain buying. Gains were limited from plentiful world supplies and slowed export demand. The lack of Chinese interest in US corn provided additional pressure on prices. Uncertainty remains as to how soon and how much (if any) US corn the Chinese will look to purchase. US$ strength provided additional pressure to the corn market.
- Closes: March at $3.70 ½, down 2 cents, July at $3.78 ¾, down 1 ¼ cents, September at $3.77 ¾, down ¼ cent and December at $3.81 ½, down ¾ cent.
- Gulf premiums were 1-cent firmer for March.
- Weekly ethanol production increased 14k bushels per day to 1,054,000 barrels per day.
- South Korea bought 3 cargoes of US corn.
- Weekly export sales estimates range from 800 tmt to 1.3 mmt.
- Argentina’s corn crop is estimated between 44.6 & 51.7 mmt based on satellite images showing high vegetative density levels across much of the major growing areas of Argentina.Forecasts suggest a drier pattern going over the next couple of weeks, which could leave the crop vulnerable to yield losses.
- Spreads: H/K 4 carry, H/N 8 ½ carry, N/Z 2 ¾ carry, Z/N1 16 ¼ carry.
Soybean prices started the day on the defensive from lack of Chinese buying and big SA crops in the making. Prices turned higher midday with the emergence of bottom pickers and reports that Argentina’s Ag Minister was looking to suspend export registrations until further notice.
- Closes: March at $8.81, up 2 cents, July at $9.02 ¾, up 3 cents, August at $9.07, up 3 ¼ cents, November at $9.13, up 2 ½ cents. The products were mixed with meal up 4-5 bucks and oil down 16 points.
- Gulf premiums were 1-cent weaker for FH Mar and unchanged for LH Mar.
- Weekly exports sales estimates range from 800 tmt to 900 tmt for beans, 150 tmt to 350 tmt for meal and 8 tmt to 45 tmt for soyoil.
- The canola market rose to slightly higher levels in sympathy with the US soybean market. Gains were limited from harvest activity in South America.
- Spreads: H/K 10 ½ carry, H/N 21 ½ carry, N/X 10 ¼ carry, X/F 3 ¼ carry.
Wheat prices traded on the defensive from continued fears about the spreading of the coronavirus. World supplies are plentiful, despite increased demand and the US$ was stronger, making the US less competitive than it is already.
- March closes: Mpls at $5.15 ¼, down ¾ cent, KC at $4.51 ¾, down 3 ¼ cents, Chicago at $5.40 ¼, up 1 ¼ cents.
- Weekly export sales range from 400 tmt to 600 tmt.
- EU wheat prices were slightly higher on renewed buying interest from lower values. Buyers were cautiously buying as concerns of the coronavirus remains.
- Spreads: Mpls H/K 15 carry (ooh La La) ......Kansas City H/K steady as a rock at a 7-cent carry.... Chicago H/K 4 ¼ inverse.