Afternoon Market Highlights


Highlights

Broad-based selling on fears of a possible global economic recession as the coronavirus continues to spread (now moving across the US). Wall Street values bounced around, falling sharply by the close. The World Health Organization declared the coronavirus a pandemic. 

  • The energy markets saw another day of weakness with crude oil down 1.24 at $33.12/barrel.
  • The US$ bounced slightly, up 11 at 96.52, the gold market was down 24 bucks at $1,636/ounce and the CD$ was down 0.00205 at 0.7257.
  • The DJIA tumbled lower, down 1465 at 23553, S&P down 125 at 2470 and NASDAQ down 392 at 0.7952. 

Corn

The corn market was lower on more weakness in the equity and energy markets. Weekly ethanol production fell to 1.040 million barrels per day, a decline of 35k barrels per day. 

  • Closes: May at $3.74 ½, down 3 cents, July at $3.76 ½, down 3 cents, September at $3.73 ½, down 3 ½ cents and December at $3.77, down 3 ½ cents.
  • Weekly export sales estimates: 600 tmt-1.3 mmt.
  • Processor bids were weaker on poor margins.
  • Hearing farmers have been out in the fields of NW Minnesota picking corn, with some now coming in closer to 54# TW.
  • Spreads: K/N 2 carry, N/U 3 ¼ inverse, Z/N1 18 cent carry.

Oilseeds

 Soybean prices drew early support from a sale of beans to unknown destinations. Prices turned lower midday on sharp losses on Wall Street. 

  • Closes: May at $8.73 ¼, down 3 cents, July at $8.80 ½, down 3 ¾ cents, August at $8.82 ½, down 4 cents, November at $8.86 ¾, down 4 ¾ cents. The products were mixed with meal unchanged at 295.20/ton and oil down 14 points at 27.30.
  • The canola market was lower, down 1.60 at 459.30.
  • Weekly export sales: 400-825 tmt for beans, 125-400 tmt for meal and 7-35 tmt for oil.
  • The USDA announced the sale of 194k tonnes of beans to unknown destinations.
  • Spreads: K/N 7 carry, Q/X 4 ½ carry, X/F 2 ½ carry, X/N1 1 ½ carry.

Wheat

Wheat prices were lower on continued weakness in outside markets. Prices drew additional pressure from a bout of technical selling and lack of demand for US wheat.  

  • May closes: Mpls at $5.12, down 6 cents, KC at $4.35 ½, down 9 ¼ cents and Chicago at $5.12 ¾, down 9 ½ cents.
  • Weekly export sales: 225-675 tmt.
  • French wheat exports are said to be on the rise.......seeing no impact from the coronavirus. Exports are estimated at 12.7 mmt.
  • Tunisia buys 125k tonnes of soft mill wheat from $206.74-$222.34/tonne C&F.
  • Spreads: Mpls K/N 10 ¾ carry, Kansas City K/N 7 ¼ cents, Chicago K/N ½ carry.