Afternoon Market Highlights
9/19/2019 4:26:56 PM
- Sonny Perdue said that a Chinese delegation plans to visit U.S. agricultural regions in hopes of building goodwill between the two nations.
- As ASF continues to wreak havoc, the Chinese commerce ministry will continue to release meat from state reserves. They released 10,000 tonnes of pork, 2,400 tonnes of beef, and 1,900 tonnes of mutton.
- October grain and oilseed options expire tomorrow, September 20th.
- As of 2:00 PM Central, October crude oil was $58.32 up $0.21 per barrel, October gold was down $8.90 at $1,500.20, and the Dow Jones was at 27,131.36 down 15.72.
Corn traded quietly today and closed near the high end of the trading range. Strength in the market came from better than expected export sales this morning. Gains were limited today as the weather forecast shows warm weather, and no frost threats. December corn closed above its 20-day moving average of $3.65 ¾.
- Weekly export sales were 1,464,600 tonnes, above estimates ranging from 900,000 to 1,300,000 tonnes.
- Strategie Grains raised their EU corn crop estimate from 63.2 million tonnes to 63.8 million tonnes.
- Closes: December at $3.72 ¾ up 1 ½; March at $3.84 up 1 ½; May at $3.91 ¾ up 1 ½; July at $3.97 ½ up 1.
- Spreads: Z/H 11 ½ cent carry; H/K 7 ¾ cent carry; K/N 5 ¾ cent carry; Z/N 24 ¾ cent carry.
Soybeans were mostly higher today, drawing on good export sales and optimism regarding U.S. China relations. The November contract closed above the 100-day moving average of $8.86 ½.
- Weekly soybean export sales were 1,728,100 tonnes, above estimates ranging from 700,000 to 1,100,000 tonnes. Soymeal sales were 93,700, within estimates of 50,000 to 250,000 tonnes and soy oil sales were 18,900, above estimates of 0 to 10,000 tonnes.
- Closes: November at $8.93 up 4 ¼; January at $9.06 up 3 ¾; March at $9.18 ¼ up 3; May at $9.28 ¾ up 2 ½; July at $9.37 ½ up 1 ½.
- Spreads: X/F 12 ¾ cent carry; F/H 12 ¼ cent carry; H/K 10 ¼ cent carry; X/N 44 ¼ cent carry.
The wheat markets were mixed today, with Minneapolis making strong gains today while Chicago and Kansas City were lower. The strength in Minneapolis is likely related to quality concerns, as falling numbers have continued to be an issue for many. More rain is expected for the Northern Plains this weekend, adding to the problem. The December contract closed below the 50-day moving average of $5.36 after briefly breaking above it for the first time in 5 weeks. December Chicago wheat closed below its 50-day moving average of $4.88.
- Weekly export sales were 286,000 tonnes, below estimates of 300,000 to 600,000 tonnes.
- Strategie Grains raised their EU soft wheat crop estimate to 144.5 million tonnes, up from 142.9 million tonnes last month. They also raised their soft wheat export estimate to 25.7 million tonnes, up from 24.8 million tonnes last month.
- Tunisia bought 42,000 tonnes of soft milling wheat from optional origins between $210.68 and $212.50 a tonne.
- December closes: Chicago at $4.88 down 1 ½; Kansas City at $4.09 ¼ down ½; Minneapolis at $5.20 ½ up 7.
- Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 13 ½ cent carry; Minneapolis Z/H 13 ½ cent carry.