Afternoon Market Highlights
3/18/2020 3:45:18 PM
Outside markets tumble while the world struggles to get a handle on the CoronaVirus and the fate of the global economy. President Trump called for the northern US border into Canada to be closed to all non-essential travel. Vaccine testing has begun, on a trial basis, in an effort to combat the CoronaVirus.
- Wall Street was sharply lower, retracing all gains form yesterday. DJIA down 1338 at 19898, S&P down 99 at 2397 and NASDAQ down 345 at 6989.
- Crude oil tumbled to a low of 20.06/barrel on ides of minimal gasoline demand for the summer as folks stay home allowing the CoronaVirus issue to be resolved.
- The currency markets are mixed with the US$ up 1343 at 100.918, gold down 39 bucks at 1486 and the CD$ getting thumped, down 0.0116 at 0.69205.
Crude oil for April
The corn market got ruffed up again today on big US acreage ideas, slowing demand for ethanol from sharp losses in the crude oil market. We are seeing prices that date back to September of 2016.
- Closes: May at $3.35 ½, down 8 ¾ cents, July at $3.41 ¾, down 8 ¼ cents, September at $3.48 ¼, down 6 ½ cents, December at $3.57 ¾, down 4 ¾ cents.
- Gulf premiums were 4 cents firmer for March, 3 cents firmer for April, 2 cents firmer for May.
- Cash markets were on the defensive from expected cuts in production at ethanol plants.
- Weekly ethanol production was down 9k barrels per day to 1,035,000 barrels per day. Next week’s number may be sharply lower after this week’s sharp losses in the energy and ethanol sectors. Stocks were plentiful at 24.6 million barrels.
- Spreads: K/N 6 ¾ carry, N/U 6 ½ carry, N/Z 15 ¾ carry, Z/N1 18 ¼ carry.
Soybean prices were higher on strength in the meal market as folks look to replace DDGs with soymeal for the livestock industry. Soyoil prices were on the defensive from the continued meltdown in the crude oil market. Talk of smaller US planted acres provided underlying support to the soybean market.
- Closes: May at $8.25 ½, up 1 ¼ cents, July at $8.32 ¾, up 1 ¾ cents, August at $8.36, up 1 ¼ cents, November at $8.42, down ¾ cents. The products were stronger with meal up 5-6 bucks at 304/ton and oil down 20 points at 25.04.
- Gulf premiums were 3-4 cents firmer for March, and 3 cents firmer for Apr/May.
- Slowdowns at various ethanol plants have pushed the focus on soymeal as an alternative feedstuffs for the livestock sector.
- Brazil and Argentina’s soybean production are seeing expectations for a reduction in overall harvested bushels, but numbers are still higher than last year ‘s 117.0 mmt for Brazil while Argentina could be lower than last year at 55.30 mmt.
- The canola market traded higher, up 3.90 at 457.20 on sharp losses in the CD$.
- Spreads: K/N 6 ¾ carry, N/Q 3carry, N/X 9 carry, Q/X 6 carry, X/N1 1 ½ carry, X/H1 7 ¼ inverse.
Wheat prices drew support from increased demand for pasta and baked goods from all the US folks currently working from their respective homes. Worries rise over supplies of good quality milling wheat.
- May closes: Mpls May unchanged at $5.09 ¼, KC at $4.44 ¾, up 12 ½ cents, Chicago at $5.08 ¼, up 9 cents.
- Algeria bought 400k tonnes of durum wheat to be sourced from the US, Mexico or Canada.
- Domestic mills look to source wheat for flour in an effort to keep product on the grocery store shelves.
- Spreads: Mpls K/N 9 ½ carry, Kansas City K/N 5 ¾ carry, Chicago K/N ¾ carry.