Afternoon Market Highlights
9/12/2019 3:58:28 PM
- After President Trump’s early morning tweet that China would be buying large amounts of U.S. agricultural goods, Reuter’s reported the sale of 600,000 tonnes of U.S. beans to China from the PNW. This has not been confirmed by the USDA at this time.
- Lean hogs locked limit up today, drawing on optimism about U.S. China relations, and the potential for China to buy more U.S. pork. Hogs will have expanded limits of $4.50 per cwt tomorrow.
- The energy markets were mostly lower, with October crude oil trading at $55.12, down $0.63 as of 3:15 PM Central.
- Cash settled cheese futures will have expanded trading limits of 15 cents per pound.
Corn traded higher today, drawing strength from soybeans and a neutral WASDE report. The U.S. yield was lowered from the prior month, but the 2019-2020 ending stocks were raised slightly. The December contract closed above the 20-day moving average of $3.66 ½ for the first time since early July.
- The USDA placed the U.S. corn yield at 168.2 bushels per acre, within estimates between 162.0 and 171.5 bushels per acre. Corn production was placed at 13.799 billion bushels, within estimates of 12.620 and 14.003 billion bushels. U.S. 2018-2019 ending stocks were 2.445, within estimates of 2.280 and 2.515 and the 2019-2020 ending stocks were 2.190, within estimates of 1.482 and 2.269 billion bushels. World ending stocks were 306.3 million tonnes, within estimates of 292.7 to 310.
- The USDA announced an export sale of 113,036 tonnes of corn for delivery to Mexico during the 2019-2020 marketing year.
- Closes: December at $3.67 ¼ up 7 ¼; March at $3.79 ¾ up 7 ½; May at $3.89 up 7 ¼; and July at $3.96 up 7.
- Spreads: Z/H 12 ½ cent carry; H/K 9 cent carry; K/N 6 ¾ cent carry; Z/N 28 ½ cent carry.
Soybeans traded explosively higher today on positive U.S. China news. The strength in beans comes from positive news on U.S. China relations, good export sales this morning, and a friendly USDA report. The November bean contract closed above its 100-day moving average of $8.86 ½. Meal traded higher as well, and the December contract closed above it’s 20-day moving average of $297.30 at $301.30.
- The USDA placed the U.S. soybean yield at 47.9 bushels per acre, within estimates of 45.5 and 49.0. Soybean production was placed at 3.633 billion bushels, within estimates of 3.434 and 3.745 billion bushels. U.S. 2018-2019 ending stocks were 1.005 billion bushels, within estimates of 990 million bushels and 1.084 billion bushels and the U.S. 2019-2020 ending stocks were 640 million bushels, within estimates of 434 to 797. The world ending stocks were 99.2 million tonnes, within estimates of 89.6 to 119.
- Closes: November at $8.95 ½ up 29; January at $9.09 up 28 ½; March at $9.21 ¼ up 27 1/4; May at $9.32 ¼ up 26; July at $9.41 ¼ up 25.
- Spreads: X/F 13 ½ cent carry; F/H 12 ¼ cent carry; H/K 10 ¾ cent carry; X/N 45 ¾ cent carry.
The wheat markets were higher today, drawing support from strong gains in corn and beans. Today’s report wasn’t impressive for wheat, with the U.S. stocks unchanged and world ending stocks raised by 1.5 million tonnes.
- The USDA placed U.S. 2019-2020 ending stocks at 1.014 billion bushels, within estimates of 989 million bushels and 1.066 billion bushels. The world ending stocks were placed at 286.5 million tonnes, within estimates of 268 to 288.1.
- December closes: Chicago at $4.83 ¾ up 6 ¼; Kansas City at $4.04 up 5 ½; Minneapolis at $5.06 ¼ up 5.
- Spreads: Chicago Z/H 5 ¼ cent carry; Kansas City Z/H 13 ¾ cent carry; Minneapolis Z/H 14 ¾ cent carry.