Tag Archives: Chicago Wheat

Summary

At the settlement the risk off feeling that started at the open stayed with most grains. Soybeans were the lone grain in the green as buyers were found midday in the soymeal. The bulls then spilled over to the soybeans. John Payne, Daniels Ag Marketing, points to strong packer margins needing to continue feeding livestock as the reason why soybeans were able to find some support. Corn and wheat closed lower with wheat seeming to be the leader to the down side.

Yesterday Argentina’s Ag Ministry halted the registration of ag exports. Analysts believe this signals a big rise in export taxes is about to hit the country.  The US Dollar is also sinking with the equities and have backed the Dollar down from it’s April 2017 highs.

Not helping the grain bulls was wheat and soybean export sales missed analysts expectations. Wheat came in at 381,000 MT and soybeans 339,000 MT. Soybeans missed the most frugal analysts by about 200,000 MT and China was only 71,000 MT of the sales. Corn export sales were in line at 864,000 MT. Sorghum also hit a marketing year high at 444,500 MT with 324,200 MT bought by an unknown destination.

USDA announced just prior to the open on Wednesday that South Korea is in for 12,300 MT of option origin corn.

Ukraine’s grains exports are up 23.1% for the current marketing year.

According to EIA data, ethanol production expanded by 1.3%, or 15,000 barrels per day (b/d), to 1.054 million b/d last week.
Ethanol stocks tightened 0.3% to 24.7 million barrels.
Imports of ethanol arriving into the West Coast were 35,000 b/d, or 10.29 million gallons for last week. This is the first time in six weeks that imports were logged.

Livestock futures traded in fairly big ranges with almost all contracts trying the limit lower move at some point. No contracts closed limit lower so normal trading ranges will be in place for tomorrow. The pork cut out at midday saw a nice bounce back to the bellies. For beef the select is now struggling to get back above $200. Choice also still seems to stall above $207.

Beef net export sales were at 13,900 MT dn 28% from last week and the 4 week wtd avg. Top buyers included Japan, South Korea, Mexico, and Canada. Beef exports were at 17,800 MT down 1% from the last week and up 2% from the 4 week average. Japan, South Korea, Mexico, Taiwan and Canada were the top destinations.

Pork net export sales were 38,900 MT up 64% from last week and 34% above the 4 week weighted average. Top buyers included Mexico, South Korea and China. Pork exports were at 42,500 MT up 1% from last week and the 4 week weighted average. Top destinations were again China, Mexico, Japan, South Korea and Canada.

The country is very quiet this afternoon and it is looking like business is essentially be done for the week Some sources are saying that other than some cleanup, business just may be essentially done for the week, especially in the South. Having said that, asking prices for cattle left on show lists are around $117 plus in the South, and $187 plus in the North. Tuesday saw light to moderate trade in most areas. Northern dressed trade ranged from $185 to $187, mostly $187, roughly $3 lower than last week’s weighted average basis Nebraska. Southern live deals were at $115, generally $5 lower than the prior week’s weighted averages.

Midday Carcass Value Thursday

Beef

Choice dn 0.50 205.84

Select up 1.24 199.84

C/S Spread 6.00

Loads 101

Pork

Carcass up 1.94 66.43

Bellies up 12.97 80.28

Loads 194

Daily Slaughter Thursday

Cattle

121,000 hd today 122,000 hd wk ago 118,644 hd yr ago

Hogs

495,000 hd today 495,000 hd wk ago 475,261 hd yr ago

Grains Settlements

  • Corn  dn 2 1/4 -6 1/2
  • Soybeans dn 1 1/2 – up 5 1/4
  • Chicago Wht dn 5 1/4 – 11
  • Kansas City Wht dn 6 1/2 – 9

Livestock Settlements

  • Live Cattle dn 1.87 – up 0.32
  • Feeder Cattle dn 1.90 up 0.87
  • Lean Hogs dn 0.77 -2.60
  • Class III Milk dn 0.02 -0.26

 Pre-opening Market Broker  Commentary

Jeff French, Top Third Ag Marketing, discusses overnight grains and what the trade may see today.


Jerry Stowell, Country Futures,  looks at what may impact the livestock futures today.

Mike Zuzolo, Global Commodity Analytics, takes a look at the midday trade. Zuzolo see’s the current market trade as a possible buyers market.


John Payne, Daniels Ag Marketing, looks at the grain settlements.


Jack Fenske, York Commodities, looks at the closing market numbers.