Afternoon Market Highlights
4/22/2020 2:50:10 PM
A bit of relief came to the row crops from a rebound in the crude oil market and hope of increased demand for soybeans. The House is expected to approve the $484 CoronaVirus bill tomorrow.
- The energy markets are mostly higher with June crude oil up 2.49 at 14.06/barrel.
- The US$ is up 150 at 100.408, the gold market is up 45-46 bucks at $1,723/ounce and the CD$ is up a hair at 0.7049.
- DJIA is up 517 at 23536, S&P up 68 at 2800 and NASDAQ up 249 at 8511.
- The FSA set July 15 as the new date (deadline) to certify acreage for corn, cotton, alfalfa and grasses. The deadline usedto take place in the fall.
Corn prices bounced higher on bargain buying and firming crude oil prices. Prices drew additional support from ongoing dryness in central and south central Brazil, stressing out the corn crop during its critical time of development. Gains were limited from lack of demand for ethanol, meat plant closures and concerns of slowing feed needs for livestock.
- Closes: May at $3.17 ½, up 8 ¼ cents, July at $3.24 ¾, up 7 ½ cents, September at $3.27 ½, up 6 cents, December at $3.63 ¾, up 4 ¾ cents.
- CIF premiums were mostly steady for April and May.
- Weekly ethanol production declined 7k barrels per day to 563k barrels per day (nearly seven weeks of drawdowns in weekly production).There was a slight increase in stocks to 27.7 million barrels.
- Hearing reports that spot basis bids have appreciated at some ethanol plants and am hearing positive margins in Iowa and Nebraska plants. Ethanol is thought to make up nearly 35% of the outlets for corn.
- More corn sales to South Korea’s feed groups and Taiwan.Most were looking to source from South America and South Africa rather than the US.
- Weekly export sales estimates: 700 tmt-1.4 mmt.
- Spreads: K/N 7 ½ carry, N/U 3 carry, N/Z 12 ½ carry, Z/N1 24 carry.
The soybean market traded slightly higher on hopes for improved demand and spillover strength in the crude oil market.
- Closes: May at $8.34 ¾, up 4 cents, July at $8.42 ½, up 1 ¾ cents, August at $8.43 ¼, up ¾ cent, November at $8.46 ½, down 1 ½ cents. The products were mixed with meal down a buck and oil up 22 points.
- CIF premiums were 1 cent firmer for April/FH May and unchanged for LH May.
- The soymeal market saw pressure from spread activity (buying oi/selling meal).
- Weekly export sales estimates: 300-850 tmt.
- Soyoil prices drew additional support from spillover strength in crude oil.
- The canola market traded higher in sympathy with the crude oil market. Gains were limited from a stronger CD$.
- Firmer bids have been noted at some Iowa processing plants and some river locations.
- The USDA announced the sale of 198k tonnes of soybeans to China for the current marketing year. The new marketing year begins in September.
- Weekly export sales estimates: 350 tmt-1.050 mmt for beans, 100-325 tmt for meal and 8-40 tmt for oil.
- Spreads: K/N 7 ¾ carry, K/Q 8 ½ carry, K/X 11 ½ carry, Q/X 3 carry, X/F 1 ¾ carry, X/H 7 inverse, X/N1 1 ½ carry.
Wheat prices took a step back on technical selling, despite ongoing dryness in the Black Sea Region and parts of Europe. Unwinding of wheat/corn spreads were noted.
- May closes: Mpls at $5.03 ¾, down 1 ¼ cents, KC at $4.90, down 6 ¾ cents, Chicago at $5.43, down 3 ¾ cents.
- Paris mill whet prices were mixed with the front month retreating as buying interest subsided. Deferred months were supported on ideas of tightening supplies.
- Spreads: Mpls K/N 13 carry, Kansas City K/N 7 ¾ carry, Chicago K/N ½ carry.