Afternoon Market Highlights


Highlights

The grain markets were weaker on a bout of profit taking after yesterday’s rally. President Trump’s announcement to impose more tariffs on Chinese goods took the wind out of many sales, especially after talk that China wanted to replenish state reserves and honor their Phase One Commitment to purchase significant amounts of US goods. Weather across the Us looks mostly favorable for planting, harvesting or pretty much whatever stage in the process the farmer is at.  Chances for rain are thought to take place early next week. 

  • The USDA reported 192.0 million soybeans crushed during March, the top end of what the trade was looking for.
  • Corn used for Ethanol was reported at 411.8 million bushels compared to last year at 441.0 million bushels.
  • DDG’s produced in March were reported at 1.655 million tons, down form 1.867 this time last year.
  • StatsCan acreage and stocks reports are scheduled for next week sometime.
  • The energy market are mostly lower, although crude oil is maintain its positive stance, trading up 84 cents at 19.69/barrel.
  • The US$ turned higher late in the day, trading up 0.059 at 99.075, the gold market is up 16-17 bucks at 1710 and the CD$ is off a freckle at 0.71065.
  • DJIA down 601 at 23744, S&P down 74 at 2828 and NASDAQ down 276 at 8126. 

Corn

The corn market drifted lower on good weather across much of the Us Midwest over the weekend. Ideas are that we will see another decent weekend for corn planting.  Pressure also came from the announcement of imposing more tariffs on Chinese goods to the US because of the CoronaVirus. 

  • Closes: July at $3.18, down 2 cents, September at $3.24 ¾, down 1 ¾ cents, December at $3.36, down 1 ¾ cents.
  • Planting progress is thought to be near 50% complete by Monday.
  • Spreads: N/U 6 ¾ carry, N/Z 18 ¼ carry, Z/H 13 ½ carry, Z/N 27 ¼ carry.

Oilseeds

The soybean market continued to trade on the defensive from renewed tensions between the US and China. planting progress going at a decent pace with reports of farmers being done planting beans by the weekend. Underlying support stems from the closing of several meat processing plants and possible reductions in feed demand. 

  • Closes: July at $8.49, down 6 ¼ cents, August at $8.49 ¾, down 6 cents, November at $8.53 ½, down 4 ¼ cents. The products were weaker with meal down 2-3 bucks and oil down 7 points.
  • Planting progress is expected to be near 25-30% complete by Monday.
  • Spreads: N/Q 1 carry, N/X 4 ¾ carry, Q/X 3 ½ carry, X/F 2 ½ carry, X/H 6 inverse, X/N 1 carry. 

Wheat

The wheat market traded lower on beneficial rains in Europe and Black Sea along with weakness in the row crops. Additional pressure stemmed from heightened tensions between the US and China (especially after seeing recent purchases of HRW recently). Support is expected to come from ideas of additional declines in the winter wheat conditions next week. 

  • July closes: Mpls at $5.06 ¾, down 8 ¾ cents, KC at $4.83, down 5 cents, Chicago at $5.15 ½, down 8 ¾ cents.
  • Planting progress is expected to be near 35-40% complete by Monday.
  • Spreads: Mpls N/U 11 ¼ carry, U/Z 13 ¼ carry, Kansas City N/U 7 carry, Chicago N/U 3 ¾ carry.