Midday in the Markets


Highlights

  • The US Dollar is $0.42 higher at 100.85.
  • Crude is down $0.25 at $53.11 per barrel.
  • The DJIA is down 61 points at 20,559.
  • COFCO announced that they have received regulatory approval to acquire the last remaining minority stake in Nidera and retain 100% ownership. The minority stake is currently held by Cynge B.V.
  • CHS Hedging will be holding Energy Hedging classes on Thursday, March 16 in Colby, KS at the City Limits Convention Center and Wednesday, March 22 in Champaign, IL.Sign-up information will be available later this week on www.chshedging.com.
  • Grain markets will be closed on Monday, February 20 for President’s Day and reopen Monday evening at 7:00 pm CT.
  • CHS Hedging will be open 8:00-Noon CT on Monday to take orders and will reopen Tuesday for normal business hours. An intern will be in the office 4:00 -9:00pm to take orders Monday as well.

Grains and Oilseeds

Corn            

  • Corn is down around 3¢. Stochastics are sliding out of “over bought” range and there is no support today from soybeans or wheat.
  • 194,112 MT of corn was sold to Japan. 60TMT was for the 16/17 crop year and 134,112MT was for 17/18.
  • The Buenos Aires Grain Exchange (BAGE) estimates Argentinian corn production at 37MMT. Rains have delayed the harvest, but yields are above average.
  • Spreads: H/K 7.25 cent carry, H/N 14 cent carry, H/U 19 ½ cent carry.

Beans

  • Soybeans are 7-10¢ lower with nearby months taking the brunt. The soy complex as a whole is trading lower.
  • Brazilian farmer selling was a little softer today on a weaker Real.
  • BAGE estimates Argentine soybean production at 54.8MMT, with an upward bias. Over half of their crop is developing pods and recent rains have improved soil moisture.
  • Spreads: H/K 10.75 cent carry, H/N 19.75 cent carry, H/Q 18.5 cent carry.

Wheat

  • Kansas City and Minneapolis wheat have been trading both sides so far today while Chicago has been mostly lower. Front month KC wheat is down 0.5¢, Minneapolis is down 2.25¢, and Chicago is down 5¢.
  • Warm weather continues support winter wheat breaking dormancy in the Southern Plains.
  • The Russian agriculture ministry says 96% of their winter crops are in good/satisfactory condition.
  • Egypt tendered to buy wheat. Talk that Russia is the lowest offer at $195/MT CNF and that there was some SRW offered at $205/MT.
  • Algeria is said to have bought over 200TMT of durum wheat, likely from Canada.
  • Spreads: Chicago H/K 14 cent carry, Mpls H/K 8 cent carry, H/K KC 12.75 cent carry.

Livestock

Cattle

  • Cattle are higher this morning on firmer cash trade.April live cattle are up $1.35 at $117.875/cwt. March feeder cattle are up $0.35 at $124.10/cwt.
  • Cash cattle traded $119.00-$120.00 in the Southern Plains.
  • Boxes continued higher this morning. Choice is up $1.15 at $190.37 and Select is up $1.12 at $189.31.
  • The Choice/Select spread is $1.06, and 89 loads were traded.
  • The daily slaughter is estimated at 96,000 head.

Hogs

  • Lean hogs are higher as well with April trading $70.55, up $0.675.
  • Packer margins were $2.02 lower at $16.34.
  • Carcass values are up $0.78 at $85.20.
  • 129 loads were traded.
  • 408,000 head are estimated to be slaughtered today.