Afternoon Market Highlights


Highlights

  • May options expire tomorrow at the close.
  • US jobless claims were reported at 232,000 compared to estimates of 230,000.  The unemployment rate is unchanged at 4.1%.
  • Energy markets are mixed with the crude oil market turning lower this afternoon.
  • The US$ is stronger, the CD$ and gold are weaker. The Dow, S&P, NASDAQ and Nikkei are weaker this afternoon.

Corn

  • The corn market closed lower on forecasts for warmer temperatures across the Upper Midwest next week.
  • Closes; May at $3.82, down 1 cent, July at $3.91, down ¾ cent and December at $4.08, down ½ cent.
  • Weekly export sales came in at 1.2 mmt.
  • CIF premiums were weaker 1-2 cents weaker for A/M. Processor bids were mostly unchanged.
  • There are a few ethanol plants, scattered about, that are pushing their bid to get corn bought ahead of road postings and spring planting.
  • The K/N tickled 9 cents again today. Consider having orders in to roll short May hedges to the July at 9 cents or better. 

Oilseeds

  • The soybean market closed on the defensive on lack of Chinese interest in buying US beans.  They have been buying beans for a while, but they are buying SA beans not US beans.
  • Weakness in soymeal and the potential for increased bean acres this year pressured the soybean market. May meal closed $3-$4 bucks lower and soyoil was off 2 points.
  • Closes; May at $10.37 ¼, down 4 ½ cents, July at $10.49, down 4 ¼ cents and November at $10.42 ½, down 3 ¼ cents.
  • Weekly export sales were reported at 2.1 mmt for beans, 172 tmt for meal and 28 tmt for soyoil.
  • CIF premiums were 2 cents weaker for April and unchanged for May. Processor bids were mostly steady. Brazil bids are 3-7 cents lower.
  • The K/N tickled 11 ¾ cents. Consider having orders in to roll short May hedges at 11 ¾-12 cents. 

Wheat

  • The wheat market was mixed with KC higher on weather concerns, Mpls weaker on ideas that farmers will be in the fields soon on warmer temperatures and Chicago hanging in the balance.
  • Weekly export sales were 184 tmt after Japanese cancellations in spring (32.9) and white wheat (35.3).
  • KC awaits strength of this weekend’s rain event (where will it land and will it be enough to make a difference). 
  • May closes; Mpls at $6.13 ¼, down 4 ¾ cents, KC at $4.95 ¼, up 6 ½ cents and Chicago at $4.76 ¾, up 1 ½ cents.
  • Farmers in northern ND are making plans to get in the fields early next week, amid forecasts for warmer temperatures this weekend and next week.
  • Canadian wheat production for 2018-19 is expected to be on par with last year. Increased acreage is expected to be offset from average to below average yields.
  • Spreads; Mpls K/N narrowed in another ¾ to 6 cents carry, Kansas City K/N unchanged at 19 cents carry and Chicago K/N steady at 14 cents carry. 

Livestock

  • Feeder cattle traded lower on technical selling and spillover weakness in the live cattle market. Live cattle traded lower on technicals and position squaring ahead of tomorrow’s cattle on feed report. Lean hogs were weaker on profit taking.
  • Cash markets traded at $121-$122 in KS & TX on a live basis. Bids for dressed cattle are at $190 with offers at $195 and no trade developing.
  • Beef export sales were 19.9 mmt with Japan, Mexico, Korea and Canada the main players.
  • Pork exports were 17.9 mmt with Korea, Mexico, Japan and Canada the main players.
  • Packer margins were $58.30 for beef and $21.55 for pork.
  • Indexes were $137.90 for feeder cattle and $55.05 for lean hogs.
  • AM wholesale pork values on 148 loads; Carcass at $67.73, up 27 cents, loins at $69.64, up 93 cents, hams at $53.31, down 24 cents and bellies at $93.24, up 3.31.
  • AM Boxed Beef values on 111 loads; Choice at $211.60, down 4 cents and Selects at $199.18, up 61 cents. The Choice/Selects spreads sits at $12.42.
  • Cash hogs were $2.05 stronger at $56.22 ($48.00-$59.00) on 5,787 head sold. IA/MN traded at $57.64, up 2.87 on 3,491 head that were sold.