Afternoon Market Highlights


Highlights

The USDA report was a bust for the most part.  US ending stocks were unchanged for corn bans and all classes of wheat. The funds have moved over to the buying side of the table.  Let’s see if the momentum can continue.  

  • The energy and equity markets saw a rebound from stimulus hopes.
  • Policy easing by many central banks helped bring calmness to Wall Street, which allowed some recovery from yesterday’s steep losses.
  • Crude oil up 3.50 at $34.53/barrel.
  • The US$ saw a healthy 1.517 bounce back to 96.41, the gold market down 29-30 bucks at $1,646/ounce, CD$ down 0.00685 at 0.72690.
  • Wall Street saw renewed life with the DJIA up 1104 at 24955, S&P up 119 at 2867 and NASDAQ up 376 at 8326. 

Corn

Corn prices traded higher on spillover strength in the energy and equity markets. Prices drew additional support form emerging bargain buyers. 

  • Closes: May at $3.77 ½, up 4 ¾ cents, July at $3.97 ½, up 4 ½ cents, September at $3.77, up 4 ½ cents and December at $3.80, up 4 ¼ cents. The July 21 contract tickled the $4 mark with a high and a close at $3.99 ¾.
  • The USDA made no changes to the US 2019/20 balance sheet. The yield was left unchanged at 168.0 and carryout was unchanged at 1.892.
  • The market now awaits the March Planting Intentions and March 1 Grain Stocks to be released on March 31 at 11 AM, CDT.
  • The canola market traded higher in sympathy with the US soy complex. The CD$ traded near 3-year lows against the US$.
  • Spreads: K/N 1 ¾ carry, N/Z ¾ carry, Z/N1 19 ¼ carry. 

    Oilseeds

    Soybean prices were lifted up on borrowed strength in crude oil and positive action on Wall Street. World stocks were raised on increases in both Brazil and Argentina. 

  • Closes: May at $8.76 ¼, up 6 ¼ cents, July at $8.84 ¼, up 5 ¼ cents, August at$8.86 ½, up 5 cents and November at $8.91 ½, up 5 ¼ cents.
  • The USDA made no changes to the US 2019/20 balance sheet.Carryout was unchanged at 425 million bushels and the yield was the same at 47.4 bushels per acre.
  • Brazil’s bean production was raised 1.0 mmt to 126.0 mmt. Argentina’s bean production was also raised 1.0 mmt to 54.0 mmt.
  • Beneficial rain events are expected to move into Argentina over the next few days.
  • Spreads: K/N 8 carry, N/Q 2 ¼ carry, Q/X 5 ¼ carry, N/X 7 ¼ carry, X/F 2 ¾ carry, X/N1 2 carry.

Wheat

Wheat prices moved higher, in choppy trade, on technicals and borrowed strength in the corn and soybean markets. World supplies of wheat were reduced slightly to 287.14 mmt. Algeria is in the market for a jag of optional origin mill wheat.  

  • May closes: Mpls at $5.18 ¾, down 2 cents, KC at $4.45, up 4 cents and Chicago at $5.22 ¼, up 3 ½ cents.
  • The USDA left the wheat balance sheets unchanged for 2019/20.All class carryout numbers were unchanged from the February report.
  • Russian currency continues to fall, giving them an edge in the world export arena.
  • Spreads: Mpls K/N 10 ¼ carry, Kansas City K/N 7 carry, Chicago K/N 1 inverse. Mpls May sits at a 73 ½-cent premium over KC May.