Afternoon Market Highlights


Highlights

The grain markets were mixed with the row crops showing light strength from weather and optimism for a trade deal to happen soon. The wheat market struggled amidst ample supplies of wheat and poor demand. The energy markets are mostly weaker with crude oil trading between $63-$64/barrel. The currency and equity markets are mostly weaker.  

  • The Cattle on Feed report is scheduled for release on Thursday after the close.
  • There will be no grain markets Thursday evening and Friday.Trade is scheduled to resume on Sunday evening at 7 PM Chicago Time. 

Corn

The corn market traded higher on a bout of short covering and concerns of planting delays after last week’s snow storm and forecasts for another rain event in the US Midwest later this week. Gains were limited from plentiful supplies of corn. Funds are said to be holding a record short position in corn, which leaves the market vulnerable to short covering rallies. 

  • Closes: May at $3.62 ¾, up 1 ¾ cents, July at $3.71 ½, up 2 cents and December at $3.90 ¾, up 1 ¾ cents.
  • Weekly export inspections were reported at 1.2 mmt, in line with expectations.
  • Corn plantings are estimated at 5% complete through Sunday, April 14. This compares to 2% the week prior.
  • Light farming activity reported in Eastern Iowa the tail end of last week and this week.
  • Spreads: K/N 8 ¾ carry, N/U 8 carry, U/Z 11 ¼ carry, Z/N 27 carry. 

Oilseeds

The soy complex moved higher on spillover strength in the meal market, technical buying and continued optimism over the trade deal with China. Much progress on resolving the trade issues is being made, although it is said that there is more work to be done before an agreement can be made. 

  • Closes: May at $8.98 ¾, up 3 ½ cents, July at $9.12 ½, up 3 ¾ cents, November at $9.31, up 3 ¼ cents. The products were mixed with meal up over three bucks and oil down 14 points.
  • Weekly export inspections were reported at 461 tmt, near the low end of the trade estimates.
  • The USDA announced the sale of 140k tonnes of US soybeans to the unknown for the current marketing year.
  • Chatter today was that we may see China in for up to 2.5 mmt of US soybeans this week.
  • NOPA soybean crush for March came in at 170.011 million bushels. Oil stocks were reported at 1.761 billion pounds and meal exports were at 844,294 tons, higher than February but lower than the March 2018 exports.
  • Spreads: K/N 13 ¾ carry, N/X 18 ½ carry, X/F 9 ½ carry, X/N 31 ½ carry. 

Wheat

The wheat market was on the defensive on lack of demand and plentiful world supplies of wheat. EU wheat prices were lower on spillover weakness in the US wheat market. Prices saw additional pressure from the fact the US did no get any of the Egyptian business last week. Mpls gained on KC and Chicago. 

  • May closes: Mpls at $5.31 ¾, up ½ cent, KC at $4.27 ¼, down 7 ¼ cents and Chicago at $4.59 ½, down 5 cents.
  • Weekly export inspections were reported at 511 tmt, in the middle of the trade estimates.
  • Spring wheat plantings are estimated to be 4% complete for the week ending April 14. This compares to 1% planted the week prior.
  • Winter wheat conditions are expected to be unchanged at 60% G/E.
  • Spreads: Mpls K/N 3 ½ carry, U/Z 14 ½ carry, Kansas City K/N 6 ¼ carry, U/Z 23 ¼ carry. 

Livestock

The Livestock market traded mostly higher with feeder cattle taking the lead in the cattle market. The hog market found strength from ongoing concerns about Asian Swine Fever in China and hopes for continued decent pork imports. Products were stronger, with bellies up another $15 bucks this morning.  Cash cattle traded $1-$2 weaker last week and has not traded yet this week. 

  • Feeder closes: April at $145.67, up 27 cents, May at $151.02, up 57 cents, August at $159.15, up 57 cents.
  • Live closes:April at $126.30, down 25 cents, June at $121.47, up 12 cents, August at $118.32, up 25 cents.
  • AM Boxed Beef values on 51 loads: Choice at $231.23 (resistance at $233.0), up 2.48 and Selects at $221.12, up 10 cents.
  • Lean hog closes: May at $90.07, up 40 cents, June at $98.30, down 37 cents, August at $101.77, up 22 cents.
  • AM pork Product values on 80 loads: Carcass cutout at 488.21, up 2.50, loins at $75.75, down 1.32, ribs at $146.00, up 3.67, hams at $63.36, down 49 cents and bellies up a whopping $15 at $173.42.
  • There were no hog cash trades reported in the morning.
  • Today’s slaughter is estimated at 121k head for cattle and 436k head for hogs.