Afternoon Market Highlights


Highlights

  • The NOPA April Soybean Crush report is scheduled for tomorrow around 11 AM Chicago Time. The average trade estimate is at 161.6 million bushels of beans crushed in April.
  • Energy markets are mostly higher with crude oil up 68 at $61.72/barrel.
  • The US$ stays strong, up 198 at 97.51, the gold market is slightly lower at 1297 and the CD$ is up slightly at 7434.
  • Wall Street seems to have recovered from yesterday’s losses with the DJIA up 239 at 25564, S&P up 28 at 2835 and the NASDAQ up 96 at 7740.
  • President Trump was said to have made reference to the US/Chinese trade war as a “little squabble”. This comes after increased tariffs were placed on Chinese goods, which was followed by Chinese retaliation. 

Corn

Corn prices rallied on another week of planting delays in the US and fund short covering. Much of the ECB is wet this week with chances of drier weather next week. The WCB is expected to get hit with rain showers this weekend. In the meantime, planters are rolling big time in the WCB. 

  • Closes: July at $3.68 ¾, up 12 ¼ carry, September at $3.77 ¼, up 11 ½ cents and December at $3.87 ¾, up 11 ¼ cents.
  • Funds were thought to be short 315k contracts of corn after the close yesterday.
  • IEG Vantage estimates the 2019 US corn acreage at 90.692 million versus the USDA March plantings estimate of 92.792 million acres.
  • Spreads: N/U 8 ½ carry (full carry at 13 cents), U/Z 10 ¼ carry, Z/H 11 ¾ carry, Z/N 25 ¾ carry. 

Oilseeds

The soy complex caught a bid as slow planting progress continues along with a bit of optimism between the US and China. Concerns are beginning to surface about the possibility of getting too late for soybean planting also. Rain events moved across parts of the Upper Midwest over the weekend with additional showers forecast for this weekend. Canada was said to be receiving adequate moisture for the beginning of the growing season. 

  • Closes: July $8.31 ½, up 29 cents, August at $8.38, up 29 cents, November at $8.56 ½, up 29 cents.
  • The USDA announced the sale of 180k tonnes of US soybeans to unknown for the current marketing year.
  • Funds were said to be short nearly 190k contracts after yesterday’s close.
  • IEG Vantage pegs the 2019 US soybean acreage at 86.437 million versus the USDA March planting estimate of 84.617 million acres.
  • The canola market traded higher in sympathy with the US soy complex. US canola acres are estimated at 1.940 million versus the USDA March plantings estimate of 1.991 million acres.
  • Spreads: N/Q 6 ¾ carry (full carry at 8 ¼ cents), N/X 24 ¾ carry, X/F 12 ¾ carry, X/N 46 ½ carry. 

Wheat

The wheat market traded higher on strength in the row crops and fund short covering. Planting progress for spring wheat was thought to be a bit on the lighter side, according many in the country. Decent crop conditions in the winter wheat seems to be keeping a lid on upside potential in the wheat market.  Paris wheat prices bounced off yesterday’s lows from the stronger US wheat market. 

  • July Closes: Mpls at $5.23 ¼, up 5 ¼ cents, KC at $4.09 ½, up 12 ½ cents and Chicago at $4.48 ½, up 11 ½ cents.
  • IEG Vantage pegs the Other spring wheat crop at 12.360 millionversus the USDA March plantings report at 12.830 million acres.
  • Duluth stocks declined 822k bushels to 13.466 mb. This compares to 17.105 mb this time last year.
  • There seems to be no real concerns about damage to the HRW crop, from the recent rain events moving through the area.
  • Spreads: Mpls N/U 8 ½ carry, U/Z at 13 ½ carry, Kansas City N/U at 10 ¾ carry, U/Z 21 carry and N9/N0 at 76 ½ carry. 

Livestock

The feeder cattle market traded lower on the strength in the corn market and waning buying interest. The live cattle market was mixed as buying interest waned toward midday and the close. The cash cattle market was quiet with bids at $116 on a live basis in Kansas. Offers are closer to $125 on a live basis and $200 dressed. The hog market traded nearly $3 higher on ideas of being oversold.  Product values were mixed with the carcass cutout values holding at stronger levels. 

  • Feeder closes: May at $13.25, up 1.20, August at $142.65, down 45 cents, October at $144.62, down 65 cents.
  • Live closes: June at $109.77, up 2 cents, August at $106.72, up 12 cents, October at $106.47, down 17 cents.
  • Hog closes: June at $89.12, up 2.92, August at $91.17, up 1.95, October at $83.22, up 1.72.
  • AM Boxed Beef values on 74 loads: Choice at $221.04, down 54 cents and Selects at $209.55, up 66 cents. The C/S spread was last at $11.49.
  • Packer margins: beef at $108.60 and pork at $4.10.
  • Today’s slaughter is estimated at 121k head for cattle and 460k head for hogs.
  • AM Pork Product values on 168 loads: carcass at $88.64, up 40 cents, loins at $80.42, down 19 cents, ribs at $162.86, down 2.33, hams at $73.92, up 1.49 and bellies at $131.67, down 47 cents.
  • Cash hogs for IA/MN were down 24 cents at a weight average of $82.66. Western Midwest cash markets were down 34 cents at a weighted average of $82.24.