Afternoon Market Highlights
9/5/2019 4:08:19 PM
- Gold and silver prices slid aggressively today, with the Comex October contracts trading as low as $1,508.20 and $18.50 respectively. This comes after strong gains in the U.S. and Chinese stock markets.
- Weekly export sales will be released tomorrow at 7:30AM. They were delayed a day due to the Labor Day holiday.
- The next WASDE report will be released on Thursday September 12th at 11:00 AM Central.
Corn traded slightly higher, before closing near unchanged. The slight boost in corn today was likely a bounce after an almost 20 cent slide in the prior four sessions. The weather has continued to look good for finishing the crop, with a warm extended forecast. This, in combination with large carry out estimates emerging for the September WASDE report, could limit gains.
- Weekly ethanol production showed a 25,000 barrel per day decrease to 1,013,000 barrels per day. Inventories increased by 0.8 million barrels to 23.8 million barrels.
- Weekly export sales are estimated at 0 to 100,000 tonnes of old crop and 500,000 to 800,000 tonnes of new crop.
- Closes: September at $3.46 ½ up ½; December at $3.58 ¾ up ¼; March at $3.71 ¾ unchanged.
- Spreads: U/Z 12 cent carry; Z/H 13 cent carry; U/H 25 ¾ cent carry; Z/N 28 ¾ cent carry.
The soybean market had a tough day today, falling off sharply and closing below the November contracts 20-day moving average of $8.72. The weakness in beans was surprising, given that China announced that trade talks would resume again in October.
- A private analyst is predicting Brazil’s 2019-2020 soybean crop to be 121.41 million tonnes. The same analyst is predicting the 2019-2020 Brazilian exports to be 75 million tonnes.
- Weekly export sales are estimated to be between -150,000 to 100,000 tonnes of old crop soybeans and 200,000 to 600,000 tonnes of new crop, soy meal sales are estimated to be between 25,000 to 75,000 tonnes of old crop and 100,000 to 250,000 tonnes of new crop, and soyoil sales are estimated to be between 0 to 20,000 tonnes of old crop and 0 to 8,000 tonnes of new crop.
- Closes: September at $8.49 ¾ down 12 ¾; November at $8.61 ½ down 14; January at $8.75 ½ down 13 ¾; March at $8.88 ¾ down 13.
- Spreads: U/X 12 cent carry; X/F 13 ¾ cent carry; F/H 13 cent carry; X/N 47 ¼ cent carry.
The wheat markets had another strong day today, again with little in the way of news. Strength in the market comes after bouncing off contract lows, and continuing dryness in Australia.
- South Korea’s KOFMIA purchased 50,000 tonnes of U.S. milling wheat. The purchase will include a variety of wheat types and is believed to be for December shipment.
- Morocco’s ONICL didn’t receive any offers in their tender for 576,000 tonnes of soft wheat from the U.S.
- Weekly export sales are estimated to be 400,000 to 800,000 tonnes.
- December closes: Chicago at $4.66 ¼ up 5 ½; Kansas City at $3.94 ¼ up 9 ¾; Minneapolis at $5.02 ¾ up 8.
- Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 13 ½ cent carry; Minneapolis Z/H 14 cent carry.