Michaela White

Aug 6, 2020

Highlights

  • The U.S. State Department lifted it’s global “Do Not Travel” advisory for U.S. citizens today.
  • Outside markets as of 4:08 PM: September $41.97 down $0.22 per barrel; U.S. Dollar Index at 92.778 down 0.090; Dow Futures at 27,284 up 224 points; gold at $2,058.30 up $27.20.
  • Last trading day for August live cattle options is Friday, August 7th and first notice day is Monday, August 10th.
  • The weekly CFTC Commitment of Traders report will be released tomorrow afternoon at 2:30 Central.
  • The next WASDE report is on Wednesday, August 12th.

Corn

Corn had a very narrow trading range today, closing near unchanged. There were very good export sales this morning, with 1,937,000 tonnes of the new crop sale going to China. The market shrugged off good exports as the U.S. appears to have a good-sized crop coming.

  • Weekly export sales were reported at 101,600 tonnes of old crop corn versus estimates that ranged between 100,000 tonnes to 600,000 tonnes and 2,600,000 tonnes of new crop sales were reported versus estimates that ranged between 2,000,000 to 2,600,000 tonnes.
  • Closes: September at $3.11 ½ up ½; December at $3.23 ¾ up ½; March at $3.35 ¾ up ¼; July at $3.50 ½ down ¼.
  • Spreads: U/Z 12 ½ cent carry; Z/H 12 cent carry; Z/N 26 ¾ cent carry.

Oilseeds

Soybeans continued to trend lower, with today being the third lower close in a row. Weakness in soybeans comes as the trade continues to expect a decent crop. Export sales were very good this morning, coming in higher than expected. Additionally, there was a flash sale reported at 8:00 AM but this wasn’t enough to get the market to perk up.

  • The USDA reported a flash sale this morning of 126,000 tonnes of soybeans for delivery to China during the 20/21 marketing year.
  • Weekly export sales were reported at 345,200 tonnes of old crop soybeans versus estimates that ranged from 200,000 to 550,000 tonnes and new crop sales were reported at 1,405,000 tonnes versus estimates that ranged between 600,000 to 1,200,000 tonnes of new crop soybeans; old crop soymeal sales were 328,300 tonnes versus estimates that ranged from 100,000 to 450,000 tonnes and new crop sales were reported at 232,500 tonnes versus estimates that ranged from 200,000 to 300,000 tonnes; old crop soy oil sales were reported at 24,400 tonnes versus estimates that ranged from 5,000 to 30,000 tonnes and new crop sales were 11,100 tonnes versus estimates that ranged between 0 to 5,000 tonnes.
  • Closes: September at $8.75 ¼ down 1; November at $8.78 down ¾; January at $8.85 ¼ unchanged; July at $8.98 ½ down ¾.
  • Spreads: U/X 3 cent carry; X/F 6 ½ cent carry; X/H 8 ¾ cent carry; X/N 20 ¼ cent carry.

Wheat

The wheat markets were lower across the board today. September Minneapolis wheat closed below the magical $5.00 mark. Wheat harvest is starting to pick up in Northern Minnesota, with early samples showing falling numbers above 300, a welcome relief after last year.

  • Brazil’s government has reportedly allowed for wheat to be imported to the country from Lithuania. These purchases would not likely start until 2021.
  • Weekly export sales were reported at 605,500 tonnes versus estimates that ranged from 200,000 to 800,000 tonnes.
  • September Closes: Chicago at $5.03 down 7 ¾; Minneapolis at $4.97 ½ down 4 ½; Kansas City at $4.18 ¼ down 8 ¼.
  • Spreads: Chicago U/Z 7 cent carry; Z/H 8 cent carry; Minneapolis U/Z 14 ¾ cent carry; Z/H 14 ¾ cent carry; Kansas City U/Z 11 cent carry; Z/H 14 ¾ cent carry.