Afternoon Market Highlights
3/24/2020 2:50:47 PM
Equity and energy markets traded higher, rebounding from steep losses over the past several days. The grain markets were mostly lower at the open and most have managed to crawl their way back to positive territory.
- China is said to be making steps in the right direction to implement provisions made in the Phase One Agreement.They have implemented a streamlined process for registering US goods for export to China, which were delayed due to the CoronaVirus.
- The energy markets are mostly higher with crude oil up 35 at $23.72/barrel, and RBOB up 0.0091 at 0.4209.
- The US$ weaker, down 389 at 102.095, the gold market is on fire, up 99 bucks at $1,666/ounce and the CD$ up 0.0013 at 0.69015.
- DJIA saw a nice recovery, up 1541 at 20133, S&P up 153 at 2374 and the NASDAQ up 421 at 7281.
- The US stimulus package is expected to be approved soon, which is expected to provide some relief to the current economic situation.
The corn market traded both sides, with prices moving into positive territory by midday on a bout of short covering form recent losses. Gains were limited from talk of ethanol plant closures across the US from waning demand for gasoline as many folks work from home during the spread of the CoronaVirus.
- Closes: May at $3.47 ¼, up 3 ¾ cents, July at $3.52, up 2 ½ cents, September at $3.56 ½, up 1 ¼ cents, December at $3.65 ¼, up 1 cent.
- CIF premiums were 2 cents firmer for M/A/M.
- Farmers are unwilling sellers at current price levels, but demand for corn seems to be decent, as South Korea has been a solid buyer of corn over the past week.
- US farmers continue planting corn in the Southern parts of the US, despite concerns of the spread of CoronaVirus. Soils are ready to go and they want to get the crop in the ground.
- Brazil’s bean harvest is nearly complete, the corn has or is getting planted and the weather conditions remain mostly dry for Southern Brazil.
- Spreads: K/N 4 ½ carry, N/U 4 ½ carry, N/Z 13 ¼ carry, Z/N1 16 carry.
Soybean prices opened lower on a bout of profit taking after several days of higher trade. Prices turned higher midday on a bounce in crude oil, and stimulus optimism. Prices drew additional support from concerns about waning soybean shipments from SA as the CoronaVirus moves through the country.
- Closes: May at $8.86 ¾, up 2 ¾ cents, July at $8.87 ½, up 2 cents, August at $8.86 ½, up 1 ¾ cents and November at $8.75, up 2 ½ cents. The products were mixed with meal down 1-2 bucks and oil up 41 points.
- CIF premiums were mostly steady.
- The canola market was mostly steady after climbing to higher levels earlier on borrowed strength in the US soyoil market. Gains were capped from strength in the CD$ and farmer selling of last year’s crop.
- Spreads: K/N 1 carry, N/Q 1 inverse, N/X 13 ¼ inverse, Q/X 12 inverse, X/F 2 ¼ inverse, X/H 24 inverse, X/N1 14 ½ inverse.
The wheat market traded lower on a bout of profit taking and improving winter wheat conditions. Losses were limited from increased demand for flour, pasta and bread items at the grocery store level. Mpls gained on KC, with the May at a 43 cent premium over KC May. The Chicago May sits at a 28 cent premium over the Mpls May contract.
- May closes: Mpls at $5.35, up 4 ¾ cents, KC at $4.90 ¾, up 1 ¼ cents, Chicago at $5.61 ½, down 1 cent.
- Paris milling wheat traded lower in sympathy with the Chicago wheat market.
- Russia cancels their temporary export restrictions on ready-to-eat processed goods.
- Spreads: Mpls K/N 9 carry, Kansas City K/N 4 ¾ carry, Chicago K/N 6 ¼ inverse.