Afternoon Market Highlights
9/17/2019 3:39:53 PM
- Saudi Arabia’s energy Minister reported that their oil supply is back online following attacks this weekend. As of 3:30 PM Central, October crude oil was at $58.75 down $4.15 per barrel.
- The monthly Cattle on Feed report will be released Friday, September 20th at 2:00 PM Central.
- Lean hogs, cash butter, and cash settled cheese will have expanded trading limits tomorrow, September 18th.
Corn traded lower today, drawing on weakness in crude oil. Additional pressure comes from yesterday’s crop progress report where the trade expected to see a decline in good to excellent, but ratings remained unchanged from last week. December corn held above it’s 20-day moving average of $3.65 ½.
- The extended forecast is showing above average temperatures for much of the U.S.
- Closes: December at $3.68 down 6; March at $3.80 down 6; May at $3.88 ¼ down 6 ¼; July at $3.95 down 6 ¼.
- Spreads: Z/H 11 ¾ cent carry; H/K 8 ¼ cent carry; K/N 6 ¾ cent carry; Z/N 26 ¾ cent carry.
Soybeans, meal, and oil traded lower today, giving back yesterday’s gains. The weakness in beans comes from good weather in much of the U.S., as well as weakness in crude oil after wild gains yesterday. Additional pressure comes as the market sees a lessening demand for soybeans as African Swine Fever continues to spread, with South Korea now reporting the disease. November soybeans held above their 100-day moving average of $8.86 ¼.
- The USDA reported the sale of 260,000 tonnes of soybeans for delivery to China during the 2019-2020 marketing year. This brings the total flash sales reported to 720,000 tonnes over the past three business days.
- Closes: November at $8.93 ¾ down 6 ¼; January at $9.07 ¼ down 6 ½; March at $9.19 ½ down 6 ¼; May at $9.30 ¼ down 6 ¼; July at $9.39 ¾ down 5 ¾.
- Spreads: X/F 13 ¾ cent carry; F/H 12 ½ cent carry; H/K 10 ¾ cent carry; X/N 46 ½ cent carry.
The wheat markets were lower across the board today, borrowing on weakness in corn and beans. Spring wheat harvest is dragging on, as rain continues to present issues for many. December Minneapolis and Kansas City wheat held above their 20-day moving averages of $5.04 ¾ and $3.99 ½ respectively. December Chicago wheat remains below it’s 50-day moving average of $4.89 ¼.
- Jordan did not make a purchase in their tender for 120,000 tonnes of milling wheat.
- Egypt’s GASC is tendering for an unspecified amount of wheat, with a deadline of Wednesday.
- Ethiopia is tendering for 400,000 tonnes of milling wheat. The tender deadline is October 23rd.
- Japan tendered for 127,893 tonnes of food quality wheat from the U.S., Canada, and Australia. The tender closes on Thursday.
- December closes: Chicago at $4.84 ¼ down 4 ½; Kansas City at $4.02 ¾ down 6 ¼; Minneapolis at $5.05 ¼ down 2 ½.
- Spreads: Chicago Z/H 6 ½ cent carry; Kansas City Z/H 14 ¼ cent carry; Minneapolis Z/H 15 cent carry.