Highlights
The grain markets were lower at the open. The corn market found some legs as bargain hunters emerged along with ideas of improving demand. The beans and wheat markets were lower but did bounce off their daily lows. The bugger for the beans and wheat is that there has been no Chinese buying since the signing of the Phase One Trade Agreement and there is no indication that there will be anytime soon. China is on holiday now till next week.
- The energy markets are mostly higher with crude oil up 43 cents at $53.58/barrel.
- The US$ is up slightly at 97.99, the gold market is down 8-9 bucks at 1568 and the CD$ is a freckle higher at 0.75935.
- DJIA up 223 at 28762, S&P up 42 at 3281 and NASDAQ up 139 at 9279.
Corn
The corn market traded higher on bargain hunting and improving demand for US corn. Today’s sale to Mexico is said to be the sixth sale in a week.
- Closes: March at $3.86 ½, up 6 cents, July at $3.97 ¼, up 5 cents, September at $3.94 ½, up 2 ¾ cents, December at $3.97 ½, up 2 ¼ cents.
- The USDA announced the sale of 125k tonnes of corn to Mexico for the current marketing year.
- Spreads: H/K 5 ¼ carry, H/N 10 ½ carry, N/Z ½ carry. Seems to be narrowing in on concerns of tightening supplies of good quality #2 YC.
Oilseeds
The soybean market traded on the defensive, losing optimism that China will be buying any US soybeans in near future. There are concerns that the Coronavirus will spread throughout China so that their overall economy will be affected. Prices bounced off the lows made early in the session on spillover strength in the equity market.
- Closes: March at $8.95, down 2 ¼ cents, July at $9.22 ¼, down 2 ¼ cents, August at $9.27, down 2 ¼ cents and November at $9.30 ½, down 3 cents.
- The products were weaker also, although did close a fair piece above the lows of the day. The soybeans also closed 5-7 cents above the day’s lows.
- The canola market opened lower but managed to climb back to positive territory, closing over a buck higher on the day.
- Spreads: H/K 14 carry, H/N 27 ½ carry, N/X 8 ½ carry, X/F 5 ½ carry.
Wheat
The wheat market was on the defensive with technical selling seen across all three wheat pits. Slow demand for US wheat also weighed on the wheat market. The recent strength in the wheat market was said to have made the US uncompetitive in the world export arena.
- Closes: Mpls at $5.42 ½, down 5 cents, KC at $4.81 ¾, down 4 ¾ cents and Chicago at $5.69 ¾, down 2 ½ cents.
- Paris milling wheat prices turned higher as the trade assesses consequences of the coronavirus on the global economy.
- Jordan bought 60k tonnes of optional origin hard milling wheat at $226.40 C&F for FH August.
- Syria tendered for 200k tonnes of Russian wheat.
- Spreads: Mpls H/K 9 ¼ carry, Kansas City 7 ¼ carry, Chicago 1 inverse.
