Afternoon Market Highlights
3/14/2019 3:52:58 PM
Trade talks with the US/Chinese Presidents have been postponed until sometime in April. Brazil plans to auction off up to 500k tonnes of their corn supply in an effort to help their livestock sector with their feed needs.
- China was said to have purchased US pork, regardless of the higher tariff structure.
- The USDA’s Stocks and plantings report is scheduled for March 28 at 11 AM CST.
- The energy markets are mixed with crude oil trading above $58/barrel.
- The US $ is stronger and gold is weaker. Wall Street is on the defensive.
Corn prices drew support on fund short covering and concerns about delays in field work and spring planting. Another concern for the spring is whether the farmer has time to get fertilizer applied to the fields. Most months traded in a 2-cent trading range. The May contract finished the session between its 10 & 20-Day MA ($3.69-$3.74).
- Closes: May at $3.70 ¼, up 3 ¾ cents, July at $3.79 ½, up 3 ¼ cents, December at $3.94, up 1 ¾ cents.
- Weekly export sales were reported at 847 tmt, near the low end of trade estimates.
- Gulf premiums were 1 cent weaker for April and 2 cents weaker for May.
- Spreads: K/N 9 ¾ carry, 76% of full carry at 12.88 cents.
Soybean prices were weaker on dwindling confidence in something good happening between the US and China. There are concerns that we will not see a big reduction in soybean plantings this year because of the wet spring and somewhat because of current price levels.
- Closes: May at $8.98 ½, down 2 ¼ cents, July at $9.12 ¼, down 2 ½ cents and November at $9.32 ¾, down 3 cents. The products were mixed with meal up 1-2 bucks and oil down 36 points.
- Weekly export sales were decent at 1.9 mmt, near the top end of trade estimates.The lion’s share of the sales were from Chinese purchases.
- The canola market appears rangebound with nearby strength stemming from a bit of bargain hunting and technicals.
- Gulf premiums were unchanged for April and May.
- Spreads: K/N 13 ¾ carry, 81% of full carry at 17 cents.
The wheat market was mixed with KC losing ground against Chicago as funds unwound short positions. There are concerns about damage to the winter wheat crop as it begins to come out of dormancy. There are mixed opinions on spring wheat acres this year.
- May closes: Mpls at $5.52 ½, up 2 cents, KC at $4.36 ½, down ¼ cent and Chicago at $4.52 ¾, up 5 ½ cents.
- Weekly export sales came in at 346 tmt, well below trade estimates.HRW was the leading class of the wheat exports.
- Turkey bought 290k tonnes of optional origin wheat from $238.0 to $245.60/tonne C&F.
- Spreads: Mpls K/N 3 ½ carry, Kansas City K/N 8 ¾ carry and Chicago K/N at 8 carry.