Patti Uhrich

Jul 15, 2021

Highlights

The grains complex saw mixed trade today with soybeans and corn slightly lower, and wheat higher.  Cattle and hog futures were mixed. The energy complex was lower. 

 

  • U.S. Drought Monitor showed extreme drought has reached into Northern Minnesota and expanded in S. Dakota and Montana. There is no relief in sight as extreme heat west of the Mississippi river and extending into the N Plains and W Canada is in the forecast.
  • Argentina continues to fight low water on the Parana River causing ships leaving the ports being loaded lighter than usual.
  • A bipartisan group of U.S. senators introduced legislation that would increase access to gasoline with a higher ethanol blend on Wednesday. The bill would extend a waiver that would allow year-round sales of a 15% ethanol fuel blend (E15).
  • The Dow was higher today 34,941.820, up 63.03 as of 2:03 p.m.
  • The energy markets were lower with August crude at 71.53. 
  • US$ higher at 92.608, S&P futures are 14 pts lower at 4352.75 pts, gold is $4.75 higher at $1,829.75 per ounce.

Corn

The corn market saw some light profit-taking to close slightly lower. 

  • Corn was lower as the September contract became the front month.
  • Weekly Exports for Corn: 138.8tmt Old Crop/133.2tmt New Crop - in the lower half of expectations.
  • Estimated fund activity -5000 contracts.
  • Closes: September at $5.64 ¼ dn 4 cents, December at $5.56 ¼, dn 2 ½ cents.
  • Spreads: U/Z 8 inverse, Z/H 7 ¾ carry. 

Oilseeds

The soybean market closed slightly lower on the lack of fresh news.  

  • Weekly exports: Beans 21.6tmt Old Crop/290.8tmt New Crop. In the lower half of expectations.
  • Weekly exports: Meal 70.7tmt Old Crop/126.4tmt New Crop.
  • NOPA crush decreased this month, down 7% from last month.  Oil stocks also lower.
  • Closes: August at $14.47 ½, dn 5 ½ cents, November at $13.80, dn 3 ¼ cents.
  • Soyoil - August at 67.21; Soybean Meal – August at 362.70
  • Canola higher 16.8 to close at 910.3.
  • Estimated fund buying in beans contracts -5000, Soymeal -3000 and Soyoil +5000.
  • Spreads: X/F 3 ¼ cent carry.

Wheat

Wheat was higher led by Mpls. wheat sharply higher on hot/dry forecasts. 

  • September closes: Mpls at $8.94, up 21 ¼ cents, KC at $6.40 ¼, up 12 ½ , Chicago at $6.72, up 17 ¾  cents.
  • Weekly exports: 424.7tmt; at the upper end of the estimates.
  • Estimated fund activity in wheat showed +6000contracts.
  • Spreads: Mpls U/Z 13 ¼ inverse, Kansas City U/Z 10 ½ carry, Chicago U/Z 6 ¾ carry.