Afternoon Market Highlights


Highlights

The grains were mixed with the row crops trading higher on renewed optimism over China buying US goods. China says they still plan to honor their Phase One trade agreement (buying increased amounts of ag products, including corn and soybeans). The market awaits next week’s USDA data.     

  • The USDA is scheduled to release their May monthly US and world balance tables on Tuesday at 11 AM CDT.
  • The energy markets are mostly higher with June crude oil up 96 at 24.53 (23.26-24.99).
  • The US$ is weaker, down 0.089 at 99.801, the gold market is down 20 bucks at 1706 and the CD$ is up 0.00275 at 0.7175.
  • DJAI up 368 at 24244, S&P up 36 at 2915 and NASDAQ up 127 at 9107. 

Corn

Corn prices were higher on hopes of more Chinese buying of US corn and cold temperatures moving into the US Midwest over the weekend. Saturday and Sunday are expected to see the coldest, with possible dips down to freezing temperatures. 

  • Closes: July at $3.19 ¾, up 1 ¾ cents, September ta $3.25, up 1 ¾ cents, December at $3.35 ½, up 1 ½ cents.
  • Gulf premiums were mostly unchanged.
  • Planting progress is expected to be 60-70% complete by Monday, with the average for this time near 56%.
  • South Korea’s Feed group bought 138k tonnes of SA corn.
  • 2019/20 ending stocks are expected to rise on possible reductions to feed and ethanol.
  • Spreads: N/U 5 ½ carry, N/Z 15 ¾ carry, Z/H 13 ¼ carry, Z/N 25 ½ carry.

Oilseeds

Soybean prices were higher on Chinese optimism and position squaring ahead of Tuesday’s USDA data. 

  • Closes: July at $8.50 ½, up 6 ¼ cents, August at $8.51 ¼, up 6 ¼ cents, November at $8.54 ¾, up 6 ½ cents. The products were higher with meal up 2-3 bucks and oil up 26 points.
  • Gulf premiums were mostly unchanged.
  • The USDA announced the sale of 120k tonnes of beans to an unknown destination for the current marketing year.Trade suspects it will be China. Chatter is that they have been sniffing around for some beans.
  • Planting progress is expected to be near 45% complete by Monday, with the average near 23%.
  • Spreads: N/Q 1 carry, N/X 4 ¼ carry, Q/X 3 ½ carry, X/F 1 carry, X/H 14 ¼ inverse, X/N 11 inverse. 

    Wheat

    The wheat market opened lower on slow demand and plentiful supplies. Prices drew support near the close on freeze concerns in the SRW, spillover strength in the row crops and position squaring ahead of the USDA data on Tuesday. 

  • July closes: Mpls at $5.16, up 5 cents, KC at $4.81 ¼ up 2 ½ cents, Chicago at $5.23, up ½ cent.
  • Monday’s planting progress is estimated at 30-35% complete. Last week’s progress was at 21% complete.
  • Europe, Russia and Ukraine could still use a bit more moisture.Would not be surprised to see reductions in production for these areas in next week’s USDA data.
  • Spreads: Mpls N/U 10 ¼ carry, N/N 53 carry, U/Z 12 carry.......Kansas City N/U 7 carry, N/N 32 ¾ carry, U/Z 11 ¼ carry.