Afternoon Market Highlights


Highlights

The grain markets were mixed with the row crops drawing strength from other markets and wheat under pressure from beneficial rain events across Europe. The market awaits the outcome of meat processing plants being ordered to stay open in an effort to support the flow of meat from farm to consumer. The Federal Reserve made no changes to interest rates in this week’s meeting. 

  • FND for May futures is tomorrow.
  • USDA Fats & Oils report is scheduled for Friday at 2PM CDT.
  • The energy markets are mostly higher with June crude oil up 3.05 at 15.39.
  • The US$ is trading 331 lower at 99.53, the gold market is up 8-9 bucks at 1730 and the CD$ is up 0.0053 at 0.72035.
  • DJIA is up nicely, up 531 at 24632, S&P up 71 at 2938 and the NASDAQ up 308 at 8915. 

Corn

The corn market traded both sides with pressure stemming from lack of demand and rapid planting. Strength came from the nice decline in ethanol stocks. 

  • Closes: July at $3$3.14 ¾, up 2 ¾ cents, September at $3.21 ¾, up 2 ½ cents,
  • Gulf premiums were 1 cent weaker for May/June.
  • Weekly ethanol production was down 26k barrels per day to 537k barrels per day. Stocks were down1.4 million barrels to 26.3 million barrels (first drop in past five weeks).
  • Taiwan bought 65k tonnes of Brazil corn for Aug/Sep shipment.
  • The average trade estimate for weekly export sales: 900 tmt-1.7 mmt.
  • Weekly export sales estimates at 900 tmt-1.7 mmt.
  • Spreads: N/U 7 ¼ carry, N/Z 18 ¾ carry, Z/H 13 ½ carry, Z/N1 26 ½ carry.

 

 

Oilseeds

The soybean market traded higher on technical buying, and export demand. The soyoil market garnered strength from the higher crude oil market.  Crude oil garnered strength from small than expected stockpiles. 

  • Closes: July at $8.37 ¼, up 5 ¼ cents, August at $8.37 ¾, up 3 ¼ cents, November at $8.43 ¾, up 4 ¾ cents. The products were stronger with meal up 80 cents and oil up 53 points.
  • Gulf premiums were steady or May/June.
  • The USDA announced the sale of 109k tonnes of beans to Mexico (65k for 2019 and 45k for next year).
  • The canola market was slightly higher on spillover strength from the US soyoil market. Prices drew additional support form slow farmer selling and fund selling, despite strength in the CD$.
  • March soybean crush is estimated at 191.5 mb (191.0-192.0). soyoil stocks are estimated at 2.364 billion pounds (2.300-2.400).
  • Weekly export sales estimates: 800 tmt-1.6 mmt for beans, 100-275 tmt for meal and 8-35 tmt for soyoil.
  • Spreads: N/Q ¾ carry, N/X 6 ½ carry, Q/X 5 ¾ carry, X/F 2 ¾ carry, X/H 5 ½ inverse, X/N 2 ¼ carry. 

Wheat

The wheat market took a thumping on beneficial rains moving across Europe this week. Mpls made new contract lows in most all months. KC traded lower in sympathy with the Chicago market, despite fears of crop losses from the recent freeze across the Southern Plains. Mpls saw pressure from improving spring wheat planting with mostly favorable weather across the Northern Plains. Price drew additional pressure form slow demand.  

  • July closes: Mpls at $5.07 ½, down 6 ½ cents, KC at $4.77 ½, down 6 ¼ cents, Chicago at $516 ¼, down 9 ¾ cents.
  • Europe receives beneficial moisture across France, Germany, Poland and the UK this week. Russia and Ukraine are expected to receive rain events next week.
  • Ethiopia tenders for 400k tonnes of optional origin wheat.
  • Weekly export sales are estimated at 200-650 tmt.
  • Spreads: Mpls N/U 10 ¾ carry, Kansas City N/U 7 ¼ carry, Chicago N/U 4 ¼ carry.