Bryant Sanderson

Jul 22, 2021

Highlights

Equity markets were slightly higher, trading off the highs due to higher than expected jobless claims. Energy markets were higher with WTI crude oil trading over a $1/barrel higher. 

  • Weekly jobless claims were 419,000 for last week vs. 350,000 estimated and vs. 368,000 from the week prior.  
  • There was a massive interest outage for many major websites including Delta Airlines, Fidelity, and British Airways that was linked to system disruptions from Akamai and Oracle, two providers of internet infrastructure services.
  • Dow Jones up 25 at 34,823, US$ up 0.106 at 92.865, and Crude Oil up $1.44 at $71.74.

                                                                                   

    Corn 

    Corn was weaker for the entire day but did come back somewhat to finish roughly 10 cents above the lows. Better chance of rains in the extended forecasts sparked the turn lower.  

  • Export sales this morning were not good. Old crop export sales were down 88,500 tonnes due to cancellations from China of 160,000 tonnes. New crop sales were at 47,700 tonnes vs. expectations of 100-400k tonnes.
  • CIF bids were stronger by a nickel for July and first half of August.
  • Spreads: U/Z 3 ¾ cent inverse; and Z/H 7 ½ cent carry; Z/N 10 ½ cent carry.

     

    Oilseeds 

    Soybeans were close to 30 cents lower on the day but recovered roughly 20 cents from the low day’s lows. A better chance of rain in the extended forecasts for a portion of the Upper Midwest and Canada pressured the soybean futures. Soybean oil and meal were weaker as well with the meal down close to $7/ton.   

  • Export sales were disappointing with 60,000 tonnes for old crop and 176,300 tonnes for new crop.
  • August options expire tomorrow and first notice day for August futures is next Friday.
  • Spreads: Q/X 53 ½ cent inverse; X/F 4 ¼ cent carry; X/H 10 cent inverse.

     

    Wheat 

    Wheat was mixed with the winter wheat markets down 15 cents or more. Minneapolis wheat climbed back to finish higher with the nearby contracts finishing 30 cents above the lows from early this morning. 

  • The money seemed to step back into the Minneapolis market as the conditions are still very poor and production likely much lower than normal. The spring wheat tour begins next week.
  • Export sales were decent at 473,000 tonnes in line with expectations of 300-600k tonnes. It was the highest week of export sales since the start of the 2021/22 marketing year.
  • Spreads: Mpls U/Z 12 cent inverse, Kansas City U/Z 11 carry, Chicago U/Z 9 ¼ cent carry.