Afternoon Market Highlights
4/28/2020 3:12:58 PM
A quiet day in the grain markets as participants shore up their positions prior to month end. Spread activity was notes as the balance of May positions get rolled out to the deferred months.President Trump has ordered meat processing plants to stay open and process meats in an effort to sustain the supply of meat to grocers around the US. The Trump Administration was said to provide guidance for worker safety (to minimized risks of illness) during the current virus situation.
- The energy markets are mixed with June crude oil down 11 at 12.66/barrel, struggling to stay above $10/barrel.
- The US$ is weaker, down 152 at 99.890, the gold market is down 1-2 bucks at 1710 and the CD$ is up 0.0265 at 0.7151.
- DJIA lost some of its earlier strength but is holding above 24k at 24157 (up 23), the S&P is down 9-10 at 2859 and the NASDAQ is down 94 at 8632.
- First Notice Day for May futures is Thursday.
- Check your open deck for orders that can be canceled.
- The next USDA report is scheduled for May 12 at 11 AM (updated US and world balance sheets).
Same story here as the US gets corn planting underway. This week’s rain events should prove beneficial for get this year’s corn crop off to a grand start.
- Closes: July at $3.11 ¾, down 1 ½ cents, September at $3.18 ¾, down ¼ cents, December unchanged at $3.29 ½, March at $3.43 ¼, up ½ cent.
- The July contract got within a penny and a half of its recent contract low of $3.09.
- Heavy rains in Argentina delay corn harvest.
- Spreads: N/U 7 ¼ carry, N/Z 17 ¾ carry, Z/H 13 ¾ carry, Z/N1 26 ¾ carry.
The soybean market struggled, trading lower in sympathy with the crude oil market. Planting progress is off to a good start in the US. Weakness in the Brazilian Real continues to temper US export prospects.
- Closes: July at $8.30 ¾, down 5 ¾ cents, August at $8.33 ¼, down 4 ¾ cents, November at $8.38 ¼, down 2 cents, January at $8.40 ¾, down ½ cent. The products were mixed with meal down 4-5 bucks at oil up 33 points.
- Rains in Argentina delay soybean harvest.
- Spreads: N/Q 2 ¾ carry, Q/X 5 carry, X/F 2 ½ carry, X/H 7 ¼ inverse, X/N ½ inverse.
The wheat market traded higher on declining winter wheat conditions, despite forecasts of improving weather for Europe and the Black Sea Region. Spring wheat planting in the US was less than what the trade was looking for but a pickup in planting is expected to take place over the next week or two.
- July closes: Mpls at $5.14, up 5 ¼ cents, KC at $4.84, up 4 ½ cents, Chicago at $5.26, up 5 cents.
- Paris milling wheat traded lower on improving weather conditions in Europe and the Black Sea Region.
- Winter wheat areas are expected to see chances for rain this and next week. Hopefully some of the dry areas will get some of the moisture as it moves across the Southern Plains.
- Argentine rain events are thought to be most beneficial for their wheat seeding, which is said to begin in May.
- Spreads: Mpls K/N 15 carry, N/U 11 ¼ carry, Kansas City K/N 9 carry, N/U 6 ¾ carry, Chicago K/N ¾ carry.