Afternoon Market Highlights
9/20/2019 3:57:46 PM
- Multiple news sites have reported that the Chinese trade negotiators will be returning to China early and cancelled their plans to travel to Montana and Nebraska as part of an attempt to build goodwill relations with the U.S.
- The Cattle on Feed report was friendly, showing all cattle on feed at 99.0% versus the average estimate of 99.3%, August cattle placed on feed at 91.0% versus the average estimate of 93.7%, and August cattle marketed at 98.0% versus the average estimate of 98.3%.
- As of 3:45 PM Central, crude oil was at $58.09 down $0.04 per barrel, gold was $1,516.50 up $17.00, and the DJIA was at 26,935.07 down 159.72.
Corn traded both sides today, drawing on weakness in soybeans as the U.S. China relationship looks a little less sweet today. Additional pressure comes from a lack of an announcement regarding a biofuel mandate, and the weather forecasts remain favorable to finishing the crop. Corn traded relatively flat this week but managed to gain 2 cents on the December contract.
- The CFTC COT report showed speculators sellers of 28,963 contracts, bringing them to a net short of 195,494 contracts as of Tuesday.
- Closes: December at $3.70 ¾ down 2; March at $3.81 ¾ down 2 ¼; May at $3.89 ½ down 2 ¼; July at $3.95 ¼ down 2 ¼.
- Spreads: Z/H 11 cent carry; H/K 7 ¾ cent carry; K/N 5 ¾ cent carry; Z/N 24 ¾ cent carry.
Soybeans traded lower today, dropping sharply after news circulated that the Chinese trade negotiators will be returning to China early. The news of their early exit comes after President Trump was quoted saying that he doesn’t think he needs to reach a deal before the 2020 election. For the week, November soybeans lost 16 cents.
- The CFTC COT report showed speculators buyers of 32,459 contracts, bringing them to a net short of 68,507 contracts as of Tuesday.
- Closes: November at $8.82 ¾ down 10 ¼; January at $8.96 ½ down 9 ½; March at $9.08 ¾ down 9 ½; May at $9.19 ¼ down 9 ½; July at $9.28 ¾ down 8 ¾.
- Spreads: X/F 13 ¾ cent carry; F/H 12 ¼ cent carry; H/K 10 ½ cent carry; X/N 46 cent carry.
The wheat markets were mixed again today, with Minneapolis wheat continuing to rally while Chicago and Kansas City drifted lower. Minneapolis December closed above its 50-day moving average of $5.21. For the week, December Chicago gained ¾ of a cent, December Kansas City gained 7 ¾ cents, and December Minneapolis gained 18 ¼ cents.
- The CFTC COT report showed speculators buyers of 844 contracts of Chicago wheat, bringing them to a net short of 44,360 contracts; buyers of 3,311 contracts of Kansas City wheat bringing them to a net short of 30,143 contracts; and sellers of 266 contracts of Minneapolis wheat, bringing them to a net short of 23,071 contracts as of Tuesday.
- Russia’s IKAR has left their wheat crop forecast unchanged at 75 million tonnes.
- December closes: Chicago at $4.84 ¼ down 3 ¾; Kansas City at $4.07 ½ down 2; Minneapolis at $5.23 ¾ up 4.
- Spreads: Chicago Z/H 6 ¾ cent carry; Kansas City Z/H 13 ¼ cent carry; Minneapolis Z/H 13 ¼ cent carry.