Highlights
The grain markets felt like they were on better footing early in the session but never seemed to really get off the ground. A nice bounce in the energy market gave a boost to the corn and beans midday but failed to last any length of time before the corn market was in search of contract lows or new contract lows. The wheat market falters on fears of more supply chain disruption and demand destruction.
- The energy markets are mostly stronger with crude oil up 4.69 at 25.01/barrel.
- The US$ is up 406 at 100.077, the gold market is up 47-48 bucks at 1631 and the CD$ is up 0.00345 at 0.70715.
- DJIA up 469 at 21413, S&P up 68 at 2516 and NASDAQ up 126 at 7487.
- Shortened hours next week with the grain markets being closed on Thursday evening and all day Friday, in observance of the Good Friday Holiday.
- The USDA S&D report is scheduled for Thursday, April 9 at 11 AM CDT.
Corn
The corn market opened lower on lack of fresh supportive news. Prices got a little goose midday with an announcement that Saudi Arabia and Russia agreed to cut back on their oil production. Prices rose 4-5 cents for a brief time but failed to hold at the higher levels.
- Closes: May at $3.33 ½, down 1 ¼ cents, July at $3.38 ½, down ¼ cent, September at $3.42, up 1 ¼ cents, December at $3.49 ¾, up 2 ½ cents.
- CIF premiums were 1-3 cents weaker.
- The May got within a penny of its contract low while J/S/D all made new contract lows during the session.
- Weekly export sales were strong at 1.1 mmt. This compares to the trade estimates between 700 tmt & 1.3 mmt.
- Spreads: K/N 5 carry, N/U 3 ½ carry, N/Z 10 ½ carry, Z/N1 21 ¾ carry.
Oilseeds
Soybean prices traded lower on lack technicals. Prices did get a pop midday on talk that Saudi Arabi and Russia had come to terms on production cutbacks going forward. The market was unable to sustain the higher levels with most months closing down 3-4 cents.
- Closes: May at $8.58 ¾, down 4 cents, July at $8.64, down 3 ¼ cents, August at $8.65 ½, down 3 ¼ cents, November at $8.63, down ½ cent. The products were mixed with meal down 5-6 bucks and oil up 19 cents.
- CIF premiums were unchanged for April and 1 cent firmer for May.
- Weekly export sales were reported at 958, near the top end of what the trade was expecting (375 tmt-1.0 mmt).
- Spreads: K/N 5 ½ carry, N/Q 2 carry, Q/X 2 ½ inverse, N/X ¾ inverse, X/F ¾ carry, F/H 14 ¾ inverse, X/N1 7 ¾ inverse.
Wheat
Wheat prices appear to have lost all friends for the time being. Poor weekly export sales, Egypt tendering and then not tendering as the CoronaVirus continues to disrupt the supply chain and destroy demand.
- May Closes: Mpls at $5.19, down 5 ½ cents, KC at $4.65 ¾, down 9 ¼ cents, Chicago at $5.41 ¾, down 8 ½ cents.
- Weekly export sales were reported at 259 tmt, at the low end of trade ideas of 250-950 tmt. Spring wheat sales were in the negative from cancellations and HRW was well below what is needed on a weekly basis with about two months left in the marketing year.
- Panic buying of flour seems to be waning. Chicago May fell below its 50 & 100-Day MA’s.
- Spreads: K/N 11 ¼ carry, Kansas City K/N 7 ¼ carry, Chicago K/N 3 ¼ inverse.
