Michaela White

Aug 3, 2020

Highlights

  • Government officials will continue discussing ways to provide coronavirus relief this afternoon. Reports indicate that if negotiators can’t reach an agreement by this afternoon, it is unlikely that an aid bill would pass Congress until at least next week.
  • Melbourne Australia is entering into its harshest restrictions yet as Coronavirus continues to flare up in the city. The restrictions include a curfew that will be in place for the next six weeks.
  • Outside markets as of 2:20 PM Central: September crude oil at $40.79 up $0.53 per barrel; Dow futures at 26,556 up 237 points;

Corn

Corn traded both sides of unchanged in a narrow range before closing near the highs of the session. The market appeared content to remain quiet as the trade awaited the weekly crop progress report this afternoon.

  • Corn conditions were rated at 72% good/excellent, which was steady with last week.
  • Brazil’s July corn exports were reported at 4.15 million tonnes versus 5.9 million tonnes in the same period last year.
  • Export inspections were reported at 716,127 tonnes versus trade estimates ranging from 700,000 to 1,150,000 tonnes.
  • Closes: September at $3.17 ¾ up 1 ¾; December at $3.28 ¾ up 1 ¾; March at $3.40 ½ up 2 ¼; July at $3.53 ¾.
  • Spreads: U/Z 11 cent carry; Z/H 11 ½ cent carry; Z/N 25 ¼ cent carry.

Oilseeds

Soybeans and soyoil were mostly higher, with soymeal a touch weaker. September soyoil has had five days in a row of gains, trading at its highest level since late February. Soyoil has drawn on strength in palm oil.

  • Soybean conditions were reported at 73% good/excellent which was a 1% increase from the week prior.
  • Brazil’s July soybean exports were reported at 10.37 million tonnes versus 7.44 million tonnes in the same period last year.
  • The USDA reported a flash sale of 260,000 tons of soybeans for delivery to unknown. Of the total, 8,000 tons is for delivery during the 19/20 marketing year and 252,000 tons is for delivery during the 20/21 marketing year.
  • Export inspections were reported at 551,543 tonnes versus trade estimates ranging from 375,000 to 700,000 tonnes.
  • Closes: September at $8.91 ¾ up 1 ½; November at $8.95 ¼; January at $9.00 ½ up 2 ½; July at $9.07 ¼ up 2 ¼.
  • Spreads: U/X 3 ¾ cent carry; X/F 5 ¼ cent carry; X/H 3 ½ cent carry; X/N 11 ¼ cent carry.

Wheat

The wheat markets were lower across the board, with Kansas City the biggest loser today. Weakness in the wheat markets is likely related to good weather in Russia as Russia’s IKAR agency raised their estimate for wheat production by 1.5 million tonnes to 79.5 million tonnes.

  • Spring wheat was reported 73% good/excellent which was a 3% increase from the week prior. The winter wheat harvest was reported at 85% complete versus 81% last week and the 5-year average of 88%.
  • Export inspections were reported at 500,110 tonnes versus trade estimates ranging from 450,000 to 675,000 tonnes.
  • EU soft wheat exports as of August 2nd for the 20/21 crop year were reported at 635,453 tonnes versus 1.96 million tonnes the year prior.
  • September Closes: Chicago at $5.20 ½ down 10 ¾; Minneapolis at $5.06 ¾ down 7 ¼; Kansas City at $4.30 ½ down 12.
  • Spreads: Chicago U/Z 8 ¼ cent carry, Z/H 8 cent carry; Minneapolis U/Z 13 ¾ cent carry, Z/H 14 cent carry; Kansas City U/Z 10 ½ cent carry, Z/H 10 ¾ cent carry.