Ami Heesch

Jul 14, 2021

Highlights

  • July futures expire at noon (CDT) today.
  • Energy markets are mostly lower with crude oil down 22  cents at 75.02/barrel.
  • US$ turns lower, down 150 at 92.601, gold up 8 bucks at 1818 and the CD$ is up 0.00190 at 0.80075.
  • DJIA up 19 at 34794, S&P up 5 at 4366, NASDAQ up 54 at 14919.
  •  Wall Street moves higher ahead of Fed Chair Jerome Powell’s testimony before Congress and optimism over earnings reports.

     

    Corn

  • The corn market traded lower on non-threatening weather conditions and concerns of slowing demand from China.
  • China corn prices were up 17 ¾ cents.
  • There were no deliveries against the July contract.
  • Brazil's corn harvest near 21% complete compared to 36% complete this time last year.
  • Ethanol production estimated near 1.050 million barrels per day.
  • Spreads: U/Z 9 ½ inverse......Z/H 7 ¾ carry. 

Outlook: lower start on favorable weather outlook

 

Oilseeds      

  • The soybean market continues its move higher on tight stocks and strong vegoil markets.
  • September palm oil closed up 44 at e,021 ringgit on expectations for increased exports and slowed output form virus lockdowns and lack of workers.
  • China beans: No 1 down 8 ½ cents, No 2 up 24 ½ cents, meal up 2-3 bucks, oil up 87 points, palm up 56 points.
  • NOPA soybean crush report for June is scheduled for tomorrow. Average trade estimate is at 159.5 million bushels of soybeans crushed (155.0-163.0).
  • Spreads: Q/X 67 ½ inverse, X/F 3 ¾ carry. 

Outlook:  higher trade from strength in related vegoil markets

 

Wheat

  • The wheat market  traded higher on dryness in the Northern Plains and Canadian Prairies, along with disappointing yields in early harvest reports in Russia.
  • Dryness looks to stick around for the next couple of weeks.
  • Egypt’s GASC tendered for wheat for September shipment. Lowest offer said to be that of Romania at $231.88/tonne.
  • Spreads: Mpls U/Z 14 ¾ inverse, Kansas City U/Z 10 ½ carry, Chicago U/Z 8 ¼ carry. 

Outlook: higher trade on crop concerns for the US and Canadian Prairies