Afternoon Market Highlights



Highlights

  • US/Chinese tensions mount, with China planning to fight back with tariffs on US goods.
  • NAFTA negotiations are still in progress with no resolution noted.
  • CHS Hedging is offering Energy Hedging classes June 21st, Grain Hedging classes July 24th and a free offering of the Compass Contracts class on July 25th. All classes will be held in the Inver Grove Heights office.
  • Energy markets are mostly higher with crude oil $1-$2 bucks higher.
  • The US$ and Bitcoin are weaker, while the CD$ and gold are higher.
  • The Dow, S&P, NASDAQ and Nikkei are all trading higher. 

Corn

  • Corn prices fell on decent crop conditions and warm/wet weather conditions, giving the corn crop a grand start to the growing season. Prices saw additional pressure from fund liquidation.
  • Closes; July at $3.93 ½, down 6 ½ cents, September at $4.02 ½, down 6 ½ cents and December at $4.13 ¼, down 5 ¾ cents.
  • The December held above its 50-Day MA of $4.12 ¼.
  • Gulf premiums were 1 cent weaker for June. Processor bids saw no changes, although some in the WCB are snooping around for corn. PNW bids were 4 cents higher for May and 4 cents lower for June.
  • Spreads; N/U 9 ¼ carry, N/Z 19 ¾ carry, U/Z 10 ½ carry, Z/H 8 ¾ carry, Z/N 18 carry. 

Oilseeds

  • The soybean market traded lower as the US/Chinese tariff situation intensifies. Losses were limited on SA struggles from last week’s trucker strike and possible delayed soybean planting with this week’s rain events (the last 25% still needs to get planted).
  • Closes; July at $10.23, down 7 ½ cents, August at $10.27 ¾, down 7 ¼ cents and November at $10.36 ½, down 6 cents.
  • Products were mixed with oil/meal spread activity noted. Soymeal was down $3-$4 bucks and soyoil was up 27 points.
  • The last of the soybean planting could get delayed from this week’s rain events.
  • Gulf premiums were 1 cent stronger in June. Processor bids are mostly unchanged. PNW bids were unchanged at 95N for June and 5 cents higher for October at 105X. Brazil bids were 6-7 higher.
  • Spreads; N/Q 4 ¾ carry, N/X 13 ¾ carry, Q/X 9 carry, X/F 4 ¾ carry, X/N 5 ½ inverse (was 14 cents last week). 

Wheat

  • Wheat prices tumbled on technical selling, rapid spring wheat planting and improving weather forecasts for the Northern US Plains and the Canadian Prairies this and next week.
  • July closes; Mpls at $6.11 ½, down 6 ½ cents and below its 50-Day MA at $6.14, KC at $5.40 ¾, down 15 ¾ cents and Chicago at $5.22, down 14 ½ cents.
  • Duluth stocks were down 720k bushels to 16.31 mb. Spot floor bids are unchanged for 14’s and 10 cents weaker for 14.5 protein. There were 104 car receipts posted today.
  • Spreads; Mpls N/U 6-8 carry, U/Z 8 ½-10 ½ carry, Kansas City N/U 17 ¾-18 ½ carry, N/N 63 ¾-67 ¾ carry, Chicago N/U 16 /2-17 ½ carry. 

Livestock

  • The Feeder cattle market traded higher on strength from Live cattle and weakness in the corn pit. June and August live cattle traded up the daily limit at $106.12 & $104.45 respectively. August feeder cattle traded up 3.57 at $148.55, breaking through resistance at $147.35. The feeder cattle index was down 18 cents at $134.86.
  • Live cattle futures were higher on short covering, decent demand and the disconnect between cash and futures. June cattle dipped down to $102.85 early in the session and there was light cash trade in NE yesterday at $109.00 and $110-$111 last week.
  • Boxed beef values were stronger with Choice at $229.30, up 1.74 and Selects at $204.63, up 98 cents. The spread was reported at $24.67 on 62 loads.
  • The hog market traded higher on stronger cash and product markets. June hogs traded up 1.65 at $77.32.The lean hog index was up 2 cents at $69.46.
  • Packer margins were stellar for beef at $291.60 and mediocre for pork at $14.10.
  • Today’s slaughter is estimated at 118k for cattle and 454k for hogs.
  • Pork products were mixed with carcass, loins, hams weaker and ribs/bellies stronger on 125 loads.
  • Cash hogs were at $67.19 (+$1.10-$1.14) in IA/MN and Western Midwest, with the Eastern Midwest at $51.49 (+28 cents).