Afternoon Market Highlights


Highlights

The grains took to higher levels on ides of improving demand for corn and wheat (not so much beans yet). Disruptions in the supply chain added underlying support to many of the commodity markets. The US 2020 planting season is just around the corner with ideas of significant increases in corn and bean acres as the nearly 17.0 million of last year’s prevent plant acres look to come back into production. The CoronaVirus and fears of economic fallout continues to take center stage with many scrambling to keep the people safe and the economy from a total meltdown.  

  • The energy markets are mostly higher after a bit of chopping around earlier. Crude oil is up 66 cents at $24.67/barrel and RBOB is up 0.1224 at 0.5661 (making a nice comeback).
  • The US$ falters, down 1054 at 100.98, the gold market seeing a whole lot of whipsaw action, currently down 15-16 bucks at $1,645/ounce and the CD$ up 0.0137 at 0.70385 (making a nice recovery as well).
  • DJIA chopped around in early trade and is currently up 1198 at 21902, S&P up 27 at 2460 and the NASDAQ up 184 at 7602. 

Corn

Corn trade was choppy with strength stemming from rumors of additional demand from China and a bout of buying from the bargain hunters. Gains were limited from big acreage ides in the US and weakness in the ethanol and gasoline sector. 

  • Closes: May at $3.48 ½, up 1 ¼ cents, July at $3.53 ½, up 1 ½ cents, September at $3.58 ½, up 1 ¾ cents, December at $3.67 ¼, up 2 cents, Dec 21 at $3.82 ½, up 2 ¼ cents.
  • Gulf premiums were 1 cent firmer M/A/M earlier in the session but are currently back to unchanged.
  • The USDA announced the sale of 138k tonnes of corn to unknown destinations for the current marketing year.
  • Weekly ethanol production saw a 30k bpd decrease to 1,050,000 bpd.Stocks are still at fairly high levels.
  • Spreads: K/N 4 ¾ carry, N/U 5 carry, N/Z 13 ½ carry, Z/N1 16 carry.

Oilseeds

The soybean market drew strength from potential delays/disruptions for moving beans and meal to SA ports and getting vessel loaded and sent on their way to destination. Supplies of soybeans to Argentine’s crushing plants have been reduced significantly as CoronaVirus measures are being taken.  Soybean prices were under pressure from the sharp drop in the soymeal pit. 

  • Closes: May at $8.81 ½, down 5 ¼ cents, July at $8.84 ¾, down 2 ¾ cents, August at $8.85 ½, down 1 cent, November at $8.77 ½, up 2 ½, Nov 21 at $8.59 ¼, up 7 ½ cents.
  • The products were mixed with meal down 10-11 bucks at 321.70 and oil up 9 points at 26.64. Soymeal prices drew serious pressure from ideas of being overbought.
  • Gulf premiums were 3 cents firmer for M/A/M.
  • The Brazil Real is down 0.0882 at 5.0120.
  • Spreads: K/N 2 ½ carry, N/Q ¼ carry, N/X 6 ½ inverse, Q/X 6 ¾ inverse, X/F 1 ¼ inverse, X/H 18 ¾ inverse, X/N1 8 ½ inverse.

Wheat

The wheat market is on a terror to the upside with Chicago on fire, reaching a high of $5.83 ¼. Heightened global demand for breads, flour and pasta. Chicago drew additional support from tight supplies of SRW and increased global interest for wheat futures. KC gained on Mpls. 

  • May closes: Mpls at $5.37 ½, up 2 ½ cents, KC at $5.01, up 10 ¼ cents, Chicago at $5.80, up 18 ½ cents.
  • EU wheat prices took to higher levels as the strength in Chicago seemed to overshadow Algeria’s sizable wheat purchase announced this morning.
  • The focus will soon move on over to the US planting season with ideas that we could see an uptick in spring wheat acres over last year, but below 2018/19.
  • Spreads: Mpls K/N 9 carry, U/Z 9 ½ carry, Z/H 11 carry, Kansas City K/N 3 ½ carry, N/U 5 ¾ carry, U/Z 9 carry. Mpls May sits at a 35-cent premium to the KC May.