Afternoon Market Highlights
9/13/2019 2:35:34 PM
- Today is the last trading day for September contracts, with trade ceasing at 12:00 PM CT.
- Soybeans and lean hogs continued to see strength today as China announced that they would not be putting additional tariffs on those two agriculture products.
- Lean hogs rallied again today after being limit up yesterday due to positive trade war news, today’s markets were up limit for December, February and April, with expanded limits at $0.045.
- The NOPA August crush report will be released on Monday at 11 AM CT, along with Weekly Crop Progress & Conditions at 3 PM CT
- Outside markets as of 2:30pm CT: Dollar down 107 ticks at 98.202, Crude Oil down $0.21 at $54.88, Dow up 36 at 27,234 and DJIA up 20.75 at 27,203.20.
Corn traded slightly higher today, ending about 1 ½ cents higher across the board as it continues to gain support from the soybean market and the possibility of a deal to boost ethanol production. The December contract stayed above the 20-day moving average of $3.66 ¼ today, after closing above it yesterday for the first time since July.
- According to an article on Bloomberg, President Trump has “tentatively” agreed with Midwest Senators on a plan to help boost ethanol production. However, the deal is not yet set and may change when Trump meets with representatives from oil producing states.
- Seeing no frost risk in the extended forecast right now, and the market will continue to focus on weather as the crop will need some heat units in order to finish up.
- Closes: December at $3.68 ¾ up 1 ½; March at $3.81 ½ up 1 ¾; May at $3.90 ½ up 1 ½; and July at $3.97 up 1.
- Spreads: Z/H 12 ½ cent carry; H/K 8 ¾ cent carry; K/N 6 ¾ cent carry; Z/N 28 ¼ cent carry.
Soybeans traded higher again today as the markets continued to get support from China and U.S trade war headlines. A private exporter’s sales report this morning along with news of a possible “interim deal” gave the markets some positive news to trade off of. The November contract closed above its 100-day moving average of $8.86 ½ again. Meal and oil also traded higher today, with October meal up $0.30 at $297.9 and October oil up 28 points at 29.29.
- According to a Reuters poll, the Brazil 19/20 soybean crop is expected to grow as much as 6.6% from the previous season, the forecasted production is 122.62 million tonnes.
- The USDA Export Sales Reporting Program showed that private exporters reported 204,000 metric tons of beans sold for delivery to China during the 19/20 marketing year
- Closes: November at $8.98 ¾ up 3 ¼; January at $9.12 ¼ up 3 ¼; March at $9.24 up 2 ¾; May at $9.34 ¾ up 2 ½; July at $9.43 up 1 ¾.
- Spreads: X/F 13 ¼ cent carry; F/H 11 ¾ cent carry; H/K 10 ½ cent carry; X/N 44 ¼ cent carry.
The wheat markets traded lower today across the board due to profit taking from this week’s gains. World wheat supplies continue to grow, pressuring the markets. The USDA’s WASDE report yesterday left wheat mostly untouched as we wait for the September Small Grains report, however they did raise the global wheat production forecast by more than the trade expected.
- Rains continue to slow down harvest for spring wheat, with some areas seeing flooding due to substantial rainfall in the last few days. Weather for the next few days is looking warmer and drier, which will hopefully help things dry out.
- Spreads were weaker across the board today, by ¼ cent for KC and Mpls Z/H and ¾ cent for Chicago Z/H.
- December closes: Chicago at $4.83 ½ down ¼; Kansas City at $3.99 ¼ down 4 ¼; Minneapolis at $5.04 ¾ down 1 ¾.
- Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 14 ¼ cent carry; Minneapolis Z/H 15 cent carry