Afternoon Market Highlights
3/9/2020 5:33:07 PM
- Super broad-based selling across all markets on more coronavirus fears, uncertainty about the fate of the global economy and no agreement to cut oil production in last week’s OPEC meeting. The equity and energy markets got pounded along with the US$ and CD$. The gold market and the SRW market manage to close in positive territory.
- USDA monthly S&D report scheduled for release tomorrow at 11 AM CDT. US ending stocks are not expected to change much, despite potential juggling amongst the various categories.
- Saudi Arabia takes a stab at Russia for not wanting to make oil production cuts in future months.
- Crude oil tumbled lower, trading down eleven bucks at $30.24/barrel.
- The US$ down 885 at 95.06, the gold market up 8 bucks at 1680 and the CD$ down 0.01495 at 0.72985.
- DJIA down 2014 points at 23851, S&P down 230 at 2748 and NASDAQ down 625 at 7951.
Corn prices traded lower on outside influences. Energy and equity markets were sharply lower which spilled over into the corn market. Prices traded off their earlier lows on a late round of short covering.
- Closes: May at $3.72 ¾, down 3 ¼ cents, July at $3.75, down 4 ¼ cents, September at $3.72 ½, down 5 cents, and December at $3.76 ¼, down 5 ¼ cents.
- Gulf premiums were 2 cents weaker March through June.
- Weekly export inspections were 830 tmt, at the low end of the trade estimates (800 tmt-1.1 mmt).
- Dec made a new contract low of $3.74.
- South Korea was in for a jag of optional origin corn (131k tonnes).
- Spreads: K/N 2 ¼ carry, N/Z 1 ¼ carry, Z/N1 18 ½ carry.
Soybean prices fell sharply in sympathy with the energy and equity market fallout. The products were down sharply. There are some thoughts that the Brazilian crop might not be as big as what was thought to be earlier. Trade guesses are backing down from 125.0 mmt to possibly as low as 122.0 mmt (which would still be 5.0 mmt above last year’s production. Brazil farmers continue to be active sellers of beans.
- Closes: May at $8.70, down 21 ¼ cents, July at $8.79, down 21 cents, August at $8.81 ½, down 20 ¼ cents, November at $8.86 ¼, down 19 ¼ cents. Products were sharply weaker with meal down 4-5 bucks and oil down 117 points.
- Soyoil prices hit new contract lows in most all months.
- Soybean prices suffer from lack of Chinese buying.Heard this morning that China was a buyer of nearly 30 cargoes of Brazilian soybeans last week.
- Gulf premiums were mostly unchanged.
- Weekly export inspections were 572 tmt, near the low end of the trade estimates (500-800 tmt).
- Spreads: K/N 9 carry, N/Q 3 carry, N/X 7 ¾ carry, Q/X 4 ¾ carry, X/F 3 carry, X/N1 1 ½ carry.
Wheat prices fell on big time selling in outside markets and the row crops. Chicago did manage to trade in positive territory by the close. The Chicago market drew support from inter market spread activity, along with a bout of short covering.
- May closes: Mpls at $5.20 ¾, down 4 ½ cents, KC at $4.42 ¾, down 3 ½ cents, Chicago at $5.18 ¾, up 3 cents.
- Weekly export inspections were at 416 tmt, at the low end of the trade guesses (400-700 tmt).
- Winter wheat conditions improved in Kansas (47% G/E vs 41%) and Oklahoma (58% G/E vs 57%) but declined in Texas (26% G/E versus 36% last week).
- Russia’s currency weakens against the US$, making them more competitive in the world export arena.
- Algeria is in for a jag of optional origin soft mill wheat.
- Spreads: Mpls K/N 9 ¾ carry, Kansas City K/N 7 ½ carry, Chicago K/N 1 carry.