Michaela White

Apr 5, 2021

Highlights

Energy markets were sharply lower today in correlation with OPEC+’s decision to ease production cuts in May, as well as concerns over potential demand declines overseas. In a stark contrast, the equity markets were sharply higher drawing strength from the friendly U.S. jobs data released Friday which helped to launch the S&P above 4,000 for the first time, and the Dow above 33,500.

 

  • Friday, April 9th at 11:00 AM Central the USDA’s monthly WASDE report will be released.
  • Outside markets as of 3:50 PM Central: Dow futures at 33,436 up 399 points; S&P futures at 4,070 up 60; May crude oil at $58.74 down $2.71; gold at $1,727.60 up $1.10; U.S. Dollar index at 92.607 down 0.415.

Corn

Corn traded mixed today, with the old crop months falling but new crop rising. Despite strong new crop prices, producer activity seemed light as many are more focused on the upcoming planting season.

 

  • Many traders are anticipating Friday’s WASDE report to show an increase in exports, leading to a tighter balance sheet.
  • Corn planting was reported at 2% complete, in line with the average trade estimate.
  • Weekly export inspections were 1,912,211 tonnes versus estimates that ranged from 1,100,000 to 2,100,000 tonnes.
  • December 21 and December 22 futures set fresh contract highs today at $4.93 ½ and $4.57 ¾ respectively.
  • Closes: May at $5.52 ½ down 7 ¼ cents; July at $5.38 ¼ down 7; December at $4.87 ¼ up 2 ¾.
  • Spreads: K/N 14 cent inverse; N/Z 51 ¼ cent inverse; Z/H 7 ½ cent carry.

Oilseeds

Soybeans traded higher today, drawing strength from last week’s friendly planting intentions report. Many traders expect to see ending stocks for U.S. soybeans to tighten on Friday’s WASDE report.

 

  • Weekly export inspections were 298,252 tonnes versus estimates that ranged from 150,000 to 500,000 tonnes.
  • Brazilian consultant AgRural reported that Brazilian farmers have harvested 78% of the planted area for their 2020/2021 soybean crop versus 83% at this time last year.
  • Closes: May at $14.12 up 10 cents; July at $14.04 ½ up 7 ¾ cents; November at $12.68 ½ up 4 ¾ cents.
  • Spreads: K/N 7 ¼ cent inverse; N/X 136 ½ cent inverse; X/H 28 ¼ cent inverse.

Wheat

The wheat markets were mixed today, with Chicago and Minneapolis trading higher while Kansas City was lower.  There are persistent concerns in Minneapolis wheat territory about dryness, with some stating that it is too dry to plant due to the potential for wind erosion.

 

  • U.S winter wheat was rated at 53% good to excellent versus an average trade estimate of 53% good to excellent. Prior to the crop entering dormancy, the USDA rated 46% good to excellent.
  • Spring wheat plantings were reported at 3% complete versus an average trade estimate of 2%.
  • The USDA reported a flash sale this morning of 130,000 tonnes of soft red winter wheat for delivery to unknown during the 2021/2022 marketing year.
  • Weekly export inspections were 594,032 tonnes versus estimates that ranged from 300,000 to 550,000 tonnes.
  • May Closes: Chicago at $6.18 ¼ up 7 ½ cents; Minneapolis at $6.07 ¼ up 7 ¾ cents; Kansas City at $5.63 ¼ down 1 ¾ cents.
  • Spreads: Chicago K/N 4 ½ cent inverse; Kansas City 6 ½ cent carry; Minneapolis 9 ½ cent carry.