Bryant Sanderson

Sep 23, 2021

Highlights

Equity markets continued their run higher from yesterday as concerns eased regarding the Chinese property market. Also, the Fed yesterday saying they’ll keep the rates unchanged and continue their monetary stimulus provided support to the equities. 

  • China Evergrande Group has $83 million in interest due on a US dollar denominated bond today, but it was not clear on whether the payment has been made and not commented on by trading close in Hong Kong.   
  • Energy markets were higher with WTI crude oil up 0.98 at $73.21/barrel.
  • US$ down 0.420 at 93.040. The gold market is down 29.0 bucks at 1747.7, CD$ up 0.0079 at 0.79050.
  • DJIA up 506.56 at 34,764, S&P up 53.30 at 4,448, NASDAQ up 155.40 at 15,052. 

     

    Corn

    The corn market was higher as buying continued from yesterday with macro influence providing support. Harvest weather looks open for much of the Corn Belt and should see the crop dry down quickly. 

  • Closes: December up 3 ¾ at $5.29 ¼, March up 4 at $5.37, July up 3 ¾ at $5.40 ¼. Red Dec up 4 ½ at $5.05 ½.
  • CIF bids were stronger with September up a penny and October up a couple cents.  
  • There was an export sale announcement this morning to Guatemala for 138,403 tonnes for the 2021/22 marketing year.
  • Export sales were on the low end of the expected range at 373,000 tonnes.   
  • Spreads: Z/H 7 ¾ carry, Z/N 11 carry, N2/Z2 35 inverse.

     

    Oilseeds

    The soybean market higher was modestly higher finding support from the edible oil market while the soymeal market was pressuring soybeans. Soymeal was down nearly $2/ton and soyoil finished around 70 higher. Harvest should continue to pick up steam as the weather looks open for much of the Corn Belt.

  • Closes: November up 1 ½ at $12.84 ¼, January up 2 ¼ at $12.94, March 2 ¼ at $12.97 ½. Red Nov up 2 ½ cents at $12.54 ½. The products were mixed with meal down close to 2 bucks and oil up 71 points.
  • Malaysian palm oil futures were up 3% overnight again, continuing yesterday’s gains in palm futures and finding support from higher soybean oil futures in China and the US.
  • Soybean export sales were within expectations at 913,000 tonnes.
  • Spreads: X/F 9 ½ carry, X/H 12 ¼ carry, X/N 20 ¾ carry, F/H 3 ½ inverse, N2/X2 51 ¾ inverse. 

     

    Wheat

    The wheat market was strong today with the Kansas City market up the largest of the three classes, continuing to find strength from fund buying. Winter wheat planting continues with mostly open weather over the next 5 days in the Southern plains. 

  • December closes: Mpls up 8 at $9.11 ½, KC up 14 at $7.20, Chicago up 12 at $7.17 ¾.
  • Export sales were the lowest they have been in three weeks at 335,900 tonnes but within expectations.  
  • The nearby Matif wheat contract was 2.50 euro/tonne higher at 252.00.
  • Algeria bought between 300,000 to 500,000 tonnes of durum wheat mostly from Mexico but some from Canada as well.
  • Spreads: Mpls Z/H 13 inverse (jumped to 14 ¾ during the session)......Kansas City Z/H 8 ½ carry.....Chicago Z/H 10 ¾ carry.