Afternoon Market Highlights
5/20/2019 2:32:18 PM
Higher grain prices encouraged country selling for corn, although not so much for soybeans and wheat. There could be a light at the end of the tunnel for the USCMA, as both Canada and Mexico look to push for an agreement after President Trump removed the existing tariffs on aluminum and steel.
- The energy markets were mixed with crude oil trading 44 higher at $63.20/barrel.
- The US$ is slightly weaker while the gold and CD$ are slightly firmer.
- The DJIA is down 126 at 25638, S&P down 25 at 2836 and the NASDAQ is down 119 at 7697.
- The next USDA supply and demand report is scheduled for June 11th, with their updated acreage numbers and June 1st grain stocks to be released on June 28th. Both reports have a 11 AM CDT release time.
- CHS Hedging is offering Grain and Energy Hedging classes and a technical trading class June 25 & June 26. Check out our website for registration and details on the classes.
- The Ag markets will be closed on Sunday night, May 26th and Monday, May 27th in observance of the Memorial Day Holiday. Trade will resume Monday, May 27th at 7 PM Chicago Time.
Corn prices continue to drive higher on poor weather conditions across the US, which has encouraged the funds to continue covering their recent record short position. More rain events this week are expected to keep many farmers sidelined. There are increasing concerns about the possibility of more bean acres, unless the cool, wet conditions stick around long enough to discourage soybean plantings as well.
- Closes: July at $3.89, up 5 ¾ cents, September at $3.96 ¼, up 6 ¼ cents and December at $4.04 ½, up 6 ¼ cents.
- Planting progress expected to be near 50% complete, with the average this time of year closer to 80% complete.
- Weekly export inspections came in at 821k tonnes.
- The May crop report suggested a 176.0 bushel per acre with ideas that will get shaved down in the June supply and demand report on Tuesday, June 11, at 1 AM Chicago Time.
- Spreads: N/U 7 ½ carry, U/Z 7 ¾ carry, Z/H 9 ½ carry, Z/N 18 ¼ carry.
Soybean prices were higher on fund short covering and rain events over the weekend. Forecasts call for more cool wet weather conditions this week. Gains were limited from US soybeans being off the list for China, at least for this year.
- Closes: July at $8.31 ¾, up 10 cents, August at $8.38 ½, up 10 ¼ cents and November at $8.57 ¾, up 10 ½ cents. The products were stronger with meal up three bucks and oil up twenty-eight points.
- The July contract fell short of its 20-Day MA of $8.40 ½ for the past four trading sessions.
- Weekly export inspections were reported at 497k tonnes.
- Planting progress is expected to be near 22% complete, with the average this time of year closer to 47% complete.
- There are concerns of possible damage to the Canadian canola crop because of the recent bout of frigid temperatures.
- Spreads: N/Q 6 ½ carry, Q/X 19 ¼ carry, X/F 12 carry, X/N 42 carry.
The wheat market traded higher on too much rain, causing delays in spring wheat plantings and possible damage to the winter wheat crop. Easing tensions between the US, Mexico and Canada provided additional support to the wheat market.
- July closes: $5.43 ½, up 15 ¾ cents, KC at $4.35 ¾, up 15 ½ cents, Chicago at $4.78 ¼, up 13 ¼ cents.
- Weekly export inspections were reported at 758k tonnes.
- Crop conditions for winter wheat are expected to be somewhere between 60 & 66% G/E compared to 64% last week.
- Spring wheat plantings are estimated at 63% complete, compared to 45% complete last week. USDA numbers could be a bit shy of actual percent of crop planted as ND, MT and MN were going like great balls of fire last week, while SD was still under water.
- Spreads: Mpls N/U 9 carry, U/Z 11 ¾ carry, Kansas City N/U 10 ¼ carry, N/N 69 ¼ carry (was 75-80 cents last week).