Bryant Sanderson

Jul 23, 2021

Highlights

 Equity markets were higher as the S&P 500 made a new record high. The 10-year treasury yield rose to 1.29%, easing concerns about the economy after falling to a 5-month low of 1.13% on Monday of this week. 

  • Cattle on feed report showed on feed at 99.0% vs. 99.0% expected. Placements were at 93.0% vs. 95.9% expected and marketing’s were at 103% vs. 102.1% expected.
  • Treasury Secretary Janet Yellen told Congress she will start taking emergency measures next week to keep the government from an unprecedented default on the national debt. She says her actions would buy time for Congress to pass legislation to raise the debt limit or suspend the limit for a period of time.  
  • Gold futures were lower for the week after four weeks of consecutive gains. It appears people were more comfortable selling gold and buying into the equity markets.
  • Dow Jones up 200 at 35,023, US$ up 0.100 at 92.930, and Crude Oil up $0.09 at $72.00.

                                                                                   

    Corn 

    Corn was lower with the December contract settling at $5.43 with the low at $5.405. The December contract was down 9 ¼ cents for the week, reaching a high of $5.73.

  • Lack of fresh news and the forecasts showing good rain chances next week led to selling before the weekend. Any sign of the rains not coming, the market will react accordingly as the temperatures are expected to be well above average for much of the country.
  • CIF bid was a nickel higher for July.
  • Spreads: U/Z 4 cent inverse; and Z/H 7 ¾ cent carry; Z/N 12 cent carry.

     

    Oilseeds 

    Soybeans were lower with better rain chances next week. Soybean meal was down almost $10/ton but soybean oil futures were a little over 1% higher.   

  • CIF bid was a nickel higher for July and a penny lower for November.
  • There was an export sale announced this morning of 100,000 tonnes to Mexico for new crop.
  • Spreads: Q/X 50 ½ cent inverse; X/F 5 cent carry; X/H 6 ¼ cent inverse.

     

    Wheat 

    Wheat was lower led by the Minneapolis market being 20 cents lower. The Kansas City and Chicago markets were both down around 8 cents on the day. 

  • The forecasts for next week show better chances of rain for Minnesota and into Canada that led to some selling pressure in the Minneapolis market.
  • The Wheat Quality Council’s HRS tour will begin next week. You can follow our CHS Hedging’s participants at @hedgeit on Twitter for constant updates. The amount of acreage abandonment will be an important factor in spring wheat production this year.
  • Spreads: Mpls U/Z 12 ¾ cent inverse, Kansas City U/Z 11 ½ carry, Chicago U/Z 9  ½ cent carry.