Afternoon Market Highlights
3/20/2020 3:20:33 PM
The virus continues to wreak havoc around the world. There are many concerns sifting around the globe, from necessary equipment for healthcare workers and possible port closures that have taken place or are expected to take place. Fears are that we are headed for a recession or that we are already in a recession.
- Three states across the US call for all folks to hunker down for the next few weeks, allowing only essential travel to take place (California, Illinois, New Jersey, New York and the UK).
- There are ideas that the USDA’s Planting Intentions and March 1 Grain Stocks may not get released on March 31st as many offices have gone to a work from home status.
- DJIA down 913.21 at 19173.98, S&P down 104.47 at 2304.92, NASDAQ down 271.06 at 6879.52.
- US$ down 0.041 at 102.712, gold up 7-8 bucks at 1489, CD$ up 0.00655 at 0.6961.
Corn prices rose on bargain buying, improving demand and recovery in the crude oil market. Prices turned lower midday as crude oil prices weakened to over two bucks a barrel.
- Closes: May at $3.43 ¾, down 1 ¾ cents, July at $3.49 ½, down 1 ½ cents, September at $3.54 ¾, down 1 cent and December unchanged at $3.63 ¼.
- The USDA announced the sale of 765k tonnes of US corn to China for the current marketing year.
- The monthly cattle on Feed report released this afternoon: On Feed March 1 at 100% (100.3%), Feb placements at 92% (92.4%) and Feb marketings at 105% (105.6%).
- Spreads: K/N 6 carry, N/U 5 carry, N/Z 13 ½ carry, Z/N 16 ¼ carry.
The soy complex traded higher on spillover strength in the soymeal market, and a better export demand outlook with the recent purchases from China and logistical snags in South America.
- Closes: May at $8.62 ½, up 19 ¼ cents, July at $8.64 ¾, up 16 ¾ cents, August at $8.65 ¼, up 16 cents and November at $8.60 ¾, up 12 ¼ cents. The products were stronger with meal up 10-11 bucks and oil up 16 points.
- Soymeal traded sharply higher on increased export demand, tight supplies in China and logistical issues in Argentina. Soyoil prices were pressured from weakness in the crude oil market.
- China’s meal stocks are the tightest they have been in several months.
- Argentina struggles with potential port strikes and crop losses as they are considered to be the world’s number one exporter of soymeal.China is a big buyer of Argentina soymeal.
- The USDA announced the sales of 110k tonnes of soybeans to an unknown destination for the current marketing year.
- Spreads: K/N 2 ½ carry, N/Q ¼ carry, N/X 4 ¾ inverse, Q/X 4 ½ inverse, X/F ¾ inverse, X/H 19 ½ inverse, x/N1 6 ½ inverse.
Wheat prices continue to higher levels on heightened concerns of flour supplies as the CoronaVirus takes its toll on the US. There is thought to be a real need for restocking the shelves at the grocery store, resulting in increased domestic demand as well.
- May closes: Mpls at $5.21, up 1 ¼ cents, KC at $4.71 ¼, up 5 ¾ cents and Chicago at $5.39 ¼, up 4 ½ cents.
- Mpls May closed up 13 cents for the week, KC may closed up 39 ¾ cents for the week and Chicago closed up 33 ½ cents for the week.
- USDA announced the sale of 340k tonnes of US HRW to China for the next marketing year.Talk is that there were more wheat sold than what was announced this morning.
- Turkey tenders for up to 200k tonnes of optional origin red mill wheat for April shipment.
- Spreads: Mpls K/N 8 ½ carry, U/Z 12 carry, Kansas City K/N 3 ¼ carry, Chicago K/N 3 ½ inverse.