Ami Heesch

Jul 31, 2020

Ami L Heesch 

Highlights

A mixed day in the grains today, dealing with mostly favorable weather condition, big crop ideas, and lack of fresh news to provide solid direction.  Soyoil was the star today on decent use in the biofuels sector. 

  • Next week should be about pegging what yield the USDA will forecast in their Aug 12 report.
  • New month trading next week, although the world situation may be dealing with the same issues of this week (viral, economic, political).
  • The energy markets are mixed with crude oil hugging the $40/ barrel area, trading up 35 cents at $40.28/barrel.
  • The US$ managed to spin a positive note to end the week, trading up 317 at 93.39, the gold market rep benefits as investors seek safe haven, trading up 21 bucks at 1971/ounce and the CD$ trading up 0.0034 at 0.74750.
  • DJIA down 100 at 26212, S&P down 7 at 3241, NASDAQ up 52 at 10640. 

Corn

The corn market finished the week on the defensive as a mostly favorable weather forecast lurks overhead. Next week should begin to show analysts yield predictions for the USDA’s Aug 12 crop production report. The ginormous corn sales this week was not enough to compete with how good the corn is thought to be.  Big, decent crops are expected and what a welcomed change form last year. 

  • Closes: September sitting at its contract low of $3.15 while the December sits at $3.26, 4 cents above its contract low of $3.22.
  • USDA announced the sale of 114k tonnes of corn to Mexico for the 2020/21 marketing year.
  • Crop conditions were 72$ G/E last week.  With the non-threatening temps this week, would think they could be unchanged or slightly higher come Monday.
  • Spreads: U/Z at 11 carry, thought to widen out to 13 cents.

Oilseeds

Soybeans stirred higher on a sharp rally in the neighboring soyoil pit. Mostly favorable weather is expected for the US Midwest, although there were concerns of possible dryness for FH August sifting around the market today.   China has been quiet the past couple of days. 

  • Closes: November at $8.92 ½, up 4 ¼ cents, January at $8.98, up 4 ¼ cents. The products were mixed with meal down 70 cents and oil up 92 points.
  • The soyoil market got some legs on increased demand for soyoil for biofuels.  Soyoil used in may totaled 778 million pounds, up from 672 million pounds used in April.
  • USDA announced the sale of 222k tons of meal to the Philippines for the 2020/21 marketing year.
  • Crop conditions were at 72% G/E last week. Perhaps they come in unchanged come Monday.
  • The canola market closed up 1.50 at $491.60.
  • Spreads: X/F 5 ½ carry, stuck in a rut for now.

Wheat

The wheat market ended the week in mixed territory, with KC and Chicago edging higher and Mpls faltering on the cusp of the spring wheat harvest for 2020.  

  • September closes: Mpls at $5.11 ½, down 1 ½ cents, KC at $4.42, up 2 cents, Chicago at $5.30 ¾, up 1 ¼ cent.
  • Paris milling wheat was mostly unchanged on lack of fresh news to price moves in either direction.
  • The French wheat harvest is nearly 90% complete.
  • Spring wheat harvest has begun in North Dakota this week with early reports of beautiful color, good TW, low MST and over 14 protein and rock solid FN.
  • Spreads: Mpls U/Z 13 ¾ carry, Z/H 13 ½ carry........Kansas City U/Z 10 ¾ carry, Z/H 10 ½ carry.....Chicago U/Z 7 ¾ carry, Z/H 7 carry.