Highlights
What a week! The grain markets continued to soften on faltering energy and equity markets. The energy market got strength late in the week while the equity market struggles from the ongoing spread of the CoronaVirus and economic uncertainty around the globe. Next week we will see a shortened trading week for the Ag markets with the Good Friday Holiday.
Have a super great and safe weekend. Make some great family moments while we are all home together, cause family matters my friends!
- The energy markets were stronger with crude oil up 3.41 at $28.74/barrel (23.52-29.13).
- The US$ is stronger, up 443 at 100.62, the gold market is up 10-11 bucks at 1641 and the CD$ is up 0.00012 at 0.70655.
- DJIA is down 360 at 21052, the S&P down 34 at 2481 and the NASDAQ down 114 at 7373.
- Ag markets will be closed next Thursday night and Friday.
- USDA is expected to release their April S&D report on the 9th. Both US and world balance sheets are expected to be updated.
Corn
Corn prices were lower on waning demand from ethanol and livestock sectors. The May contract dipped below the $3.30 support level to $3.28. Feedstuffs for livestock are at risk of possible herd liquidation from the recent meltdown in the cattle and hog markets.
- Closes: $3.30 ¾, down 2 ¾ cents, July at $3.36 ¾, down 1 ¾ cents, September at $3.42 ¼, up ¼ cent, December at $3.50 ¾, up 1 cent.
- The USDA announced the sale of 567k tonnes of corn to China. Decent sale, although only 63k was slated for the current marketing year, which doesn’t till the end of August.
- South Korea’s feed operations continue to buy corn.
- Spreads: K/N 6 carry, N/U 5 ¼ carry, N/Z13 ½ carry, Z/N1 21 ½ carry.
Oilseeds
Soybean prices were weaker as the virus disrupts world supplies and waning demand. Optimism for China to purchase increased amounts of US soybeans is subsiding as there have been no real big interest from China for some time now. There were some ideas that the US could see some business from poor logistics out of Brazil and Argentina.
- Closes: May at $8.54 ¼, down 4 ½ cents, July at $8.59 ½, down 4 ½ cents, August at $8.62, down 3 ½ cents, November at $8.61 ½, down 1 ½ cents. The products were mixed with meal down 5-6 bucks and oil up 19 points.
- SA production estimates decline from persistent hot/dry weather in southern Brazil and parts of Argentina. Brazil’s bean production was last estimated at 123.52 mmt and Argentina’s crop was last estimated at 49.0 mmt.
- Brazil farmers continue to sell with the weakness in the Brazilian Real.
- Spreads: K/N 5 ½ carry, N/Q 2 ½ carry, N/X 1 ½ carry, X/F 1 carry, X/H 15 ¼ inverse, X/N1 9 ¾ inverse.
Wheat
The wheat market traded higher on ideas of being oversold earlier in the week. There were some concerns overnight about frigid temperatures that are expected to move through the Southern Plains area today and over the weekend, leading to concerns about possible damage to the winter wheat crop in Kansas and Oklahoma.
- May closes: Mpls at $5.24 ½, up 5 ½, KC at $4.73, up 9 cents, Chicago at $5.49 ¼, up 7 ½ cents.
- Next week will be the first for the USDA weekly crop progress/conditions report.
- Russia continues to be on the dry side which has been providing underlying support to the wheat market and is expected to continue as dryness continues.
- There are concerns of global supplies as some countries curb their wheat exports and others worry about being able to get supplies because of the disruptions around the globe form the spread of the CoronaVirus.
- Spreads: Mpls K/N at 10 ¾ carry, Kansas City K/N 6 ½ carry, Chicago K/N 4 ½ inverse.
