Afternoon Market Highlights
3/2/2020 4:18:40 PM
The grain markets rebounded from last week’s selloff, on renewed buying interest. The US$ was weaker, which provided additional support to the ag world. Prices drew additional support from a rebound in the equity and energy markets.
- The energy markets are mostly higher with crude oil up over two bucks at $47.68/barrel.
- Coronavirus is continuing to make headlines, with the total of cases in Washington state now reaching at least 18, and the death toll at 6.
- Outside markets as of 2:30 PM Central: April crude oil at $47.17 up $2.41 per barrel; Gold at $1,594.90 up $28.20 per troy ounce; Dow futures 26,245 up 881 points, US Dollar Index at 97.449 down 0.683.
Corn closed the day higher, as commodities across all sectors attempted to stabilize, following sharp losses last week.
- Weekly export inspections were 896,221 tons versus estimates ranging from 800,000 to 1,100,000 tons.
- Closes: May at $3.75 ½ up 7 ¼; July at $3.78 ½ up 6; September at $3.76 ¾ up 4 ¼; December at $3.80 ¾ up 3 ¾.
- Gulf premiums were 1-centweaker for March.
- Spreads: H/K ¾ cent carry; K/N 2 ¾ cent carry; N/U 1 ¾ cent inverse; U/Z 4 cent carry.
Soybean prices traded higher in sympathy with the soymeal market. There are hopes that China will come to the table for some US soybeans, now that the application process has begun.
- Weekly export inspections were 670,608 tons versus estimates ranging from 500,000 to 800,000 tons.
- The USDA reported that 5.66 million tons of soybeans were crushed in January, up from 5.54 million in December 2019 and 5.49 million last year.
- Closes: May at $9.01 up 8 ¼; July at $9.10 ¾ up 9 ¼; August at $9.13 ¾ up 9 ¾; November 9.17 ¾ up 9 ½.
- Gulf premiums were 1-cent weaker for FH Mar and unchanged for LH March.
- Spreads: H/K 10 ¾ cent carry; K/N 10 cent carry; N/Q 3 cent carry; Q/X 3 ½ cent carry.
Wheat prices were weaker, despite weakness in the US$ and strength in the row crops. Chatter was that there was unwinding of spreads (buying corn and beans against wheat). Winter wheat crop conditions look to have improved in KS, OK and TX. Official USDA weekly reports are scheduled to begin the first full week of April.
- Weekly export inspections were 654,097 tons, above estimates ranging from 350,000 to 600,000 tons.
- Winter wheat conditions at the end of February: OK 57% G/E versus 46% in January, KS 43% G/E versus 35% and TX 36% G/E versus 31%
- The European Union’s soft wheat exports were reported at 19.11 million tonnes as of March 1st, up from 11.94 million tonnes last year.
- Turkey’s state grain board issues international tenders to buy 305,000 tonnes of wheat, with tender deadlines of March 11th.
- May Closes: Chicago at $5.23 ¼ down 1 ¾; Kansas City at $4.58 up 4 ¾; Minneapolis at $5.28 ¼ up ¾.
- Spreads: Chicago H/K 2 ¾ cent inverse, K/N ¾ cent carry; Kansas City H/K 6 ½ cent carry, K/N 6 ½ cent carry; Minneapolis H/K 16 cent carry, K/N 9 ½ cent carry.