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Afternoon Market Highlights


Afternoon Market Highlights


Highlights

  • The energy markets are mostly higher, with June crude oil trading back over $71/barrel.
  • The US$, CD$ and gold are all stronger.
  • Wall Street is mostly higher this afternoon with the Dow up 75 at 24735.
  • Weekly export sales figures are scheduled for release tomorrow at 730 CDT.
  • CHS Hedging Grain Hedging classes are being offered July 24th at the IGH office.
  • There will be a Compass Contract class offered at IGH office on July 25th.
  • Energy hedging classes are being offered June 21st and Jan 9th at the IGH office.

Corn

  • The corn market traded lower on profit taking, despite concerns of potential planting delays with the last 20-30% of the crop.
  • Ethanol production was reported at 1.058 million barrels per day, up 18k barrels per day. This marks the third consecutive week of increased ethanol production.
  • Beneficial rains are expected this weekend and again late next week, for the Corn Belt.
  • Weekly export sales are estimated at 700 tmt to 1.0 mmt.
  • Gulf premiums were mixed (+1/-1). Ethanol processors are pushing their bids for corn now through the end of the year. PNW bids were 2 cents weaker for June.
  • Spreads; N/U 8-8 ½ carry, U/Z 8 ½-9 ½ carry, Z/H 7 ¾-8 ½ carry, Z/N 15 ½-147 ¾ carry.

  

 Oilseeds

  • The soy complex tumbled on negative news from China, rapid US planting progress and rains in the forecast.
  • Closes; July at $9.99 ¾, down 19 cents, August at $10.03 ¼, down 18 ¾ cents and November at $10.09, down 15 ¾ cents. Soymeal was down $5-$6 bucks and soyoil was down 50-53 points.
  • Gulf premiums were 1-3 cents weaker for June and July. Processor bids are mostly steady. PNW bids were posting no bid for old crop, while October was 5 cents firmer at 80X. Brazil bids were 4-6 cents weaker for June.
  • Weekly export sales estimates; 400 tmt-700 tmt for beans, 100 tmt-300 tmt for meal and 10 tmt-40 tmt for soyoil.
  • The canola market traded lower on poor crush margins, weakness in US soybeans and soyoil markets and fund selling.
  • Soymeal is said to be backed up at Chinese crushing plants as the crushing pace has slowed down from lack of demand from their livestock sector because of negative margins.
  • Soybean plantings in China are expected to rise significantly for 2018-19. Brazil soybean export values are currently at a significant discount to US export values.
  • Spreads; N/Q 3 ¾ carry, N/X 9 ½ carry, Q/U 2 ¼ carry, Q/X 5 ¾ carry, X/F 4 ¼ carry.

Wheat

 

 

  • The wheat market stayed the course, with higher prices, on lack of moisture in the US, Canada, Russia and Australia.
  • July closes; Mpls at $6.11 ¼, up 5 cents, KC at $5.14, up 4 ¼ cents and Chicago at $4.94 ¼, up ¾ cent.
  • Forecasts are calling for beneficial moisture for most areas except Australia, where farmers there are planting wheat in some of the driest soils in several years.
  • Weekly export sales are estimated at 100 tmt to 500 tmt.
  • Spreads; Mpls N/U 6 ¼-7 ¼ carry, Kansas City N/U 18 ½-19 carry, Chicago N/U 15 ½-16 ½ carry. 

 

 

Livestock

  • Live cattle traded lower on weaker cash and boxed beef values.Feeder cattle traded lower on losses in the live cattle market and fund selling (some sell stops were triggered). August Feeder cattle closed at $136.72, down 1.72 and June live cattle closed at $101.82, down 1.15.
  • The hog market traded higher on fund buying. June hogs closed at $75.90, up 1.17 and the October closed at $63.62, up 40 cents.
  • Cash cattle trade is quiet this afternoon with offers at $118-$120 live and $190 dressed. There were 2,586 cattle offered with zero cattle sold at today’s Fed Cattle Exchange.
  • Light trade in NE was noted at $115-$116, down $6-$7 from last week.
  • PM wholesale pork values were mixed with carcass cutouts, and loins weaker and ribs, hams and bellies stronger.
  • Packer margins for beef were $173.95 and $12.25 for hogs.
  • This morning’s Boxed Beef values were weaker on 69 loads.
  • Today’s slaughter is estimated at 118k for cattle and 460k for hogs.