Afternoon Market Highlights


Highlights

The corn and wheat markets were on the defensive on leftover fuel from USDA data dump yesterday. This week’s US/Chinese trade talks have led to a delay on imposing a 10% tariff on more Chinese goods.     

  • The Energy markets are stronger with crude oil trading over 2 bucks higher at $57/barrel.
  • The US$ is up 437 at 97.81, gold down 4-5 bucks at 1503 and the CD$ up 0.00085 at 0.75645.
  • DJIA up 378 at 26285, S&P up 48 at 2928 and the NASDAQ up 152 at 8016.
  • The annual corn and soybean crop tour begins next week. CHS Hedging will have scouts on the tour. 

Corn

Another day of pounding on corn prices as the trade digests yesterday’s USDA data. The fear of not having ample supplies of corn is evident in the N0/Z0 spread going from concerns at a 22-cent inverse to a 4-cent carry. The Dec 19 filled the $3.80-$3.77 ½ gap and now has a new gap from $3.92 ¾ -$3.88. 

  • Closes: September at $3.66, down 19 ¼ cents, December at $3.76 ½, down 16 ¼ cents, July at $4.04 ½, down 8 ¼ cents and red Dec at $4.08, up ½ cent.
  • Funds were big sellers again today on what looks to be a much bigger US harvest than what the trade was expecting.
  • Spreads: weaker with the U/Z at a 10 ¾-cent carry, Z/H at a 13 ½-cent carry, Z/N 27 ¾ carry.

  December 2019 Corn Chart


Oilseeds

Soybean prices traded higher on delays in imposing additional tariffs on more Chinese goods. Prices drew additional support on technicals.  The November tickled is 30-Day MA at $8.96 ¾ but failed to hold at or above that level. November closed below its 20-Day MA of $8.90. 

  • Closes: November at $8.89, up 9 ¾ cents, July at $9.35 ¾, up 8 cents and red Nov at $9.46, up 5 cents. Products were mixed with meal up 5-6 bucks and oil down 47 points.
  • The canola market traded lower on spillover weakness in the US soyoil market. Prices drew additional pressure from increased farmer selling and commercial hedge pressure. Crushers were noted buyers at the lower prices and attractive margins.
  • Spreads: X/F 13 carry, F/K 23 carry, X/N 46 ¾ carry.   

Wheat

Wheat prices got thumped on more sharp losses in the corn market. Chicago traded both sides with support stemming from a bout of short covering.  Mpls and KC fell to new contract lows on bigger production forecast than what the trade was expecting. 

  • September closes: Mpls at $5.03 ¼, down 6 cents, KC at $3.83 ¾, down 8 ½ cents and Chicago at $4.72, up ¼ cent. The Chicago Dec closed at $4.75 ¾, down ½ cent.
  • Paris milling wheat tumbled to contract lows on spillover weakness in the US corn market.
  • The Ukrainian wheat harvest was last reported at 98% complete with total production estimated at 27.9 mmt. This compares to the USDA at 29.20 mmt.
  • Spreads: Mpls U/Z 13 ½ carry, Z/H 15 ¾ carry, Kansas City U/Z 16 ¾ carry, U/U 70 carry.

Minneapolis September 19