Afternoon Market Highlights 10.21.21


Ami Heesch

Oct 21, 2021

Highlights

Broad based selloff across many of the markets with a bit of profit taking in the Mpls wheat market after several days of tickling new contract highs. Oil markets set back on ideas of a milder winter across the Us that thought earlier. Cattle on Feed report to be released on Friday after the close: On Feed October 1 at 99.3%, September Placements at 101.2% and September Marketings at 97.3%.

 

 

  • The energy marks mostly lower with crude oil down 85 cents at 82.57/barrel.
  • US$ firms, up 0.219 at 93.77, gold off a freckle at 1784/ounce and CD$ down 0.00365 at 0.80830.
  • DJIA down 6 at 35603, S&P up 3 at 4530 and the ANSDAQ up 94 at 15215.
  • South American weather forecasts suggest beneficial weather conditions for the 6-10 day outlook.

     

     

    Corn

    The corn market traded lower on spillover weakness in the wheat and soy complex. Losses were limited from export demand. Harvest delays were noted in some parts of SD and the ECB where they had gotten a fair amount of rain recently.

     

  • Closes: December down 7 cents at $5.32 ¼, March down 6 ¼ cents ta $5.41 ½, July down 5 ½ at $5.46 and Red Dec down 4 ½ cents at $5.30.
  • CIF premiums were 5 cents weaker for October and November. Ethanol bids are strong and margins are healthy.
  • Weekly export sales were reported at 1.3 mmt, at the top end of what the trade was expecting. Top destinations were Unknown, Mexico, Japan, and Columbia. Guatemala canceled 15k tonnes.
  • The USDA announced the sale of 130k tonne of corn to Mexico for the 2021/22 marketing year.
  • Strategie Grains raised their EU corn production estimated from 64.9 mmt to 67.5 mmt.
  • The International Grains Council increased their world production estimate 1.0 mmt to 1.210 mmt.
  • Spreads: Z/H 9 carry, H/K 4 ½ carry, Z2/H3 6 ½ carry.

     

    Oilseeds

    The soybean market traded sharply lower in sympathy with the soymeal and soyoil markets. Prices drew additional pressure from weakness in related oil markets and beneficial rains for South America as they are in the beginning stages of a new planting season..   

  • Closes: November down 21 ½ cents at $12.24, January down 21 ½ cents at $12.33 ½, July down 20 cents at $12.58 ¾, red Nov down 19 cents at $12.29 ¾.
  • CIF premiums were 7-8 cents weaker for October and 7-3 cents weaker for November. Processors continue to push their bids in an effort to source soybeans for the winter grind.
  • The products were weaker with meal down 4-5 bucks and oil down 212 points.
  • Weekly export sales were reported at 2.9 mmt for beans, 247 tmt for meal and 3tmt for soyoil. Top destinations for beans were China, Unknown, and the Netherlands.
  • The canola market was weaker with November down 11-12 bucks.
  • Spreads: X/F 9 ¼ carry.....X/N 33 ¾ carry.

     

     

    Wheat

    The wheat market finished lower on a stronger US$ and a bout of profit taking Mpls after climbing to new contract highs early in the session. Weekly export sales were ok, inline with what the trade was looking for.

     

  • December closes: Mpls down 4 ½ cents at $9.85 ¼ (contract high of $9.96 ¾), KC down 12 cents at $7.47 ¾, Chicago down 8 cents at $7.41 ¼.
  • Weekly export sales were reported at 362 tmt (207 HRW, 51 SRW, 62 HRS, 61 White, and a  cancelation of 18 in HAD).
  • International Grains Council left their global wheat production estimate unchanged at 781.0 mmt.
  • Spreads: Mpls Z/H 18 inverse, Kansas City Z/H 6 ¼ carry and Chicago Z/H 12 carry.