Michaela White

Apr 6, 2021

Highlights

Energy markets were higher today, rebounding after steep losses yesterday. Equity markets were mostly lower on light volume as the markets take a pause following sharp gains on strong economic data.

 

  • Friday, April 9th at 11:00 AM Central the USDA’s monthly WASDE report will be released.
  • Outside markets as of 3:40 PM Central: May crude oil at $59.29 up $0.64; Dow 33,315 down 100 points; S&P at 4,064 down 3 points; U.S. Dollar Index at 92.280 down 0.742; gold at $1,741.70 up $14.70.

Corn

Corn traded the day mixed, with new crop slightly higher and the deferred months trading lower. There continues to be little fresh news as attention turns towards Friday’s report, and then weather to follow as planting picks up speed.

 

  • Agroconsult, a Brazilian consulting agency, predicts that the 2021 second corn crop in Brazil will be 78.3 million tonnes versus the 82.8 million tonne prediction made by the government in March.
  • The average trade estimate for U.S. ending stocks on Friday’s WASDE report is 1.379 billion bushels, down from 1.502 billion bushels on the March report.
  • Closes: May at $5.54 ¾ up 1 ½ cents; July at $5.41 ¼ up 2 cents; December $4.83 ¼ down 5 ¼.
  • Spreads: K/N 13 ¼ cent inverse; N/Z 58 cent inverse; Z/H 7 ¼ cent carry.

Oilseeds

Soybeans traded higher today, with the May contract holding above its 20-day moving average at $14.11 ¼. The market continues to focus on tight U.S. ending stocks that are anticipated to shrink on Friday’s report.

 

  • The average trade estimate for U.S. ending stocks on Friday’s WASDE report is 118 million bushels, down from 120 million bushels on the March report.
  • Agroconsult, a Brazilian consulting agency, predicts that Brazil’s soybean crop for 2020/2021 will be 137.1 million tonnes, which is a record crop.
  • Closes: May at $14.20 ½ up 7 ¾ cents; July at $14.12 ½ up 7 cents; November at $12.69 ¼ cents.
  • Spreads: K/N 7 ¾ cent inverse; N/X 142 ¾ cent inverse; X/H 29 ¾ cent inverse.

Wheat

The wheat markets were mixed, with Minneapolis trading higher on dryness in the Northern Plains and the winter wheat markets trading lower.

 

  • Egypt’s GASC bought 345,000 tonnes of wheat in their tender for early August shipment. 290,000 tonnes of wheat were from Russia and 55,000 tonnes of Ukrainian wheat.
  • Thailand issued an international tender for up to 504,000 tonnes of feed wheat with tenders due on April 7th.
  • The average trade estimate for U.S. ending stocks on Friday’s WASDE report is 836 million bushels, down from 846 million bushels on the March report.
  • May Closes: Chicago at $6.16 ¼ down 1 ¾ cents; Kansas City at $5.55 ½ down 7 ½ cents; Minneapolis at $6.12 ½ up 5 cents.
  • Spreads: Chicago K/N 2 ¾ cent inverse; Kansas City K/N 6 ¼ cent carry; Minneapolis K/N 9 cent carry.