Bryant Sanderson

Sep 24, 2021

Highlights

Equity markets were mostly subdued today after a volatile week. The market is still trying to figure out what exactly is happening with the China real estate company, Evergrande, and if they are paying off interest payments that were due this week. 

  • The People’s Bank of China said all crypto-related activities are illegal in China. Consequently, bitcoin fell nearly 6% today and ether, the second largest digital currency, dropped 8%.  
  • Hogs and Pigs quarterly report this afternoon showed all hogs at 96.1% of last year vs. expectations of 97.3-99.8 with total head at 75.352 million vs. 77.101 million expected. Kept for breeding was 97.7% of last year vs. expectations of 98.3-99.7 and kept for market was 95.9% of last year vs. expectations of 97.2-99.9.
  • The Cattle on Feed report showed on feed at 99% vs. 97.9% expected at 11.234 million head. Placements were 102% vs. 99% expected and marketings were 100% vs. 100% expected.  
  • Next week on September 30th, the USDA will release the Grain Stocks as of September 1 report and the Small Grains Summary. Both will be released at 11:00 am CT.
  • Energy markets were higher with WTI crude oil up 0.60 at 73.90/barrel.
  • US$ up 0.285 at 93.315. The gold market is down 2.7 bucks at 1745.0, CD$ down 0.00075 at 0.78980.
  • DJIA up 60.67 at 34,825, S&P up 10.33 at 4,459, NASDAQ up 2.33 at 15,054. 

     

    Corn

    The corn market was a couple cents lower for the day with the December’21 contract finishing a ½ cent below last week. Harvest weather looks to be open for the western Corn Belt while Illinois and east is expecting to see a chance of rain over the next couple of days. 

  • Closes: December down 2 ½ at $5.26 ¾, March down 2 ½ at $5.34 ½, July down 2 at $5.38 ¼. Red Dec down ¾ at $5.04 ¾.
  • Brazil planting pace is close a quarter done with rain chances in the forecast for the central part of the country. Argentina is at 8% planted according to Buenos Aires Grain Exchange with some rain on the way but more is needed.
  • Spreads: Z/H 7 ½ carry, Z/N 11 ½ carry, N2/Z2 33 ¾ inverse.

     

    Oilseeds

    The soybean market finished the week mixed with the soymeal around a $1/ton lower and the soybean oil futures us 87. For the week, the November’21 futures were up a penny for the week with the low at $12.57 ½ and high at $12.90 ¼.

  • Closes: November up ¾ at $12.85, January up ¾ at $12.94 ¾, March up ¼ at $12.97 ¾, Red Nov down ¼ cent at $12.54 ¼. The products were mixed with meal down close to a dollar and oil up 87 points.
  • Malaysian palm oil futures were down slightly overnight but finished the week up more than 4%.
  • A poll was done on expectations for the Brazilian soybean crop. It showed production is expected to be at 143.75 million tonnes, up 5.77% from last year and planted area at 40.31 million hectares, up 4.6% from last year.
  • Spreads: X/F 9 ½ carry, X/H 12 ¾ carry, X/N 20 ½ carry, F/H 3 ¼ inverse, N2/X2 51 ¼ inverse. 

     

    Wheat

    The wheat market was mixed with the Minneapolis and Chicago markets higher, but Kansas City was a modest amount. For the week, December’21 Minneapolis wheat was 15 ½ cents higher, Chicago December’21 was 15 cents higher, Kansas City December was 6 ¾ higher. 

  • December closes: Mpls up 4 ½ at $9.16, KC down ¼ at $7.19 ¾, Chicago up 6 at $7.23 ¾.
  • The nearby Matif wheat contract was 1.25 euro/tonne higher at 253.25.
  • Winter wheat planting continues to chug along with a decent amount of rain coming for the Southern Plains at the end of the month.
  • Market is eagerly waiting for the Small Grains Summary and Grain Stocks reports to come out next week Thursday, the 30th.
  • China has bought almost two million tonnes of wheat from Australia for 2021/22 even thought the two countries are in a trade standoff. The lack of available wheat from other sources forced China to go to Australia for their needs.
  • Spreads: Mpls Z/H 12 ½ inverse ......Kansas City Z/H 8 ¼ carry…...Chicago Z/H 11 ¼ carry.