Ami L Heesch
The Ag markets saw pressure from investors clipping a few coupons form recent rallies. Stimulus aid hopes faded again prior to the early November election date. Increases in COVID-19 cases continue to be noted around the globe. US Presidential debate #2 on deck for this evening.
- Cattle on Feed report to be released tomorrow after the close. Average trade estimates: On Feed Oct 1 at 103.2 (102.7-103.9), September Placements at 102.5 (98.9-106.5) and September Marketings at 105.8 (104.9-106.7).
- The energy markets are mostly higher with crude oil up 61 cents at $40.64/barrel.
- US$ moves higher, trading up 329 at 92.94 as investor seek safe haven, the gold market was down 22-23 bucks at 1903/ounce on US$ strength and the CD$ unchanged at 76160.
- DJIA up 152 at 28363, S&P up 16 at 3448, NASDAQ up 21 at 11506.
The corn market traded higher from improving demand for US corn and delays in the corn harvest from recent wet/snowy weather conditions across the WCB and rain events in the ECB. Dec corn hit a high of $4.19, a stone’s throw from the contract high of $4.24.
- Closes: December at $4.15 ¾, up 2 cents, March at $4.18, up 1 ¼ cents, July at $4.18 ¾, up ¾ cent.
- Weekly exports sales were decent at 1.8 mmt.
- Spreads: Z/H 2 carry, ideas a re that it goes to an inverse.
Soybean prices finished the day in negative territory on speculative fund selling, despite more business announced this morning. Losses were limited from decent sales of US beans and strong cash markets. Meal and oil export sales were decent, pushing nearby meal prices to levels not seen since May of 2018 on a continuous chart.
- Closes: November at $10.71 ¼, down ¾ cent, March at $10.56 ½, down 2 ¼ cents, November at $9.8 ¼, down 2 ¼ cents. The products were stronger with meal up 2-3 bucks and oil up 51 points.
- Weekly export sales were solid at 2.2 mmt.
- The USDA announced the sale of 132k tonnes of beans to Unknown and 152k tonnes of beans to Mexico for the current marketing year.
- The canola market traded lower on fund selling, after tickling 3-year highs in the nearby contract. Losses were limited from decent demand for canola and spillover strength in the US soy products.
- Spreads: X/F 1 ¼ inverse with ideas it narrows to a 5-7 cent inverse.
The wheat market got thumped on a bout of profit taking and chatter of possible beneficial moisture for Russia and the US Southern Plains. Egypt’s GASC is in the market for a jag of optional origin wheat this afternoon.
- December closes: Mpls at $5.74 ¼, down 8 ¼ cents, KC at $5.58 ½, down 11 ¼ cents, Chicago at $6.21 ½, down 8 ¼ cents.
- Weekly export sales were disappointing at 368 tmt.
- Spreads: Mpls Z/H 8 ¼ carry, probably goes to a nickel before it goes back to 13 cents. Ya just never really know for sure when you speak Mpls talk.