Afternoon Market Highlights


Highlights

· The U.S. dollar is stronger, trading 0.209 points higher at 93.588.

· The DJIA is weaker, trading up 7 points at 24,188.

· Crude was weaker trading down $1.57 at 56.05 a barrel.

· Weekly export sales are due out tomorrow at 7:30 am CST. Average estimates for tomorrow’s report are, corn 800,000 - 1,200,000, wheat 250,000-450,000, soybeans1,000,000-1,500,000, Meal 100,000-300,000, Soyoil 5,000-22,000.

Grains and Oilseeds:                                                                    

Corn

Corn traded both sides today as traders reacted to StatsCan report and continued dryness in South America. March closed 1 cent lower at $3.52 ¾, July was 1 ¼ cent lower at $3.69 ¼ and Dec 18 was ¾ cents lower at $3.85 ¼.

Current spreads: H/K 8 ½ cent carry, K/N 8 ¼ cent carry, N/Z 16 cent carry.

· Continued dryness in Argentina has traders talking about the possibility of lower corn yields.

· StatsCan increased its corn production estimate to 14.1 million tonnes in 2017 which was 6.8% increase from 2016. After the 2013 Canadian crop of 14.2 million tonnes this is the highest corn for grain production on record.

· Ethanol production reached an all-time weekly high of 1.108 million barrels/day with production 42,000 higher than the previous week. US ethanol stocks are up .5 million barrels to 22.5 million barrels.

· Monsanto’s Chief Executive of South American Operations believes that the delay in soybean plantings will decrease Brazil’s winter corn crop acres. He also believes that next summer’s corn crop area in Brazil might drop 20-30% for the 2017-18 crop.

Oilseeds

Technical selling put pressure on the soybean markets today as soybean futures turned around, from a nearly 4 month high. Big canola production numbers from StatsCan added to the selling pressure. Jan beans closed 5 ¾ cents lower at $10.02 ¾, July was 5 ½ cents lower at $10.33 ¼ and the Nov 18 closed 4 cents lower at $10.14 ½.    

Current spreads: F/H 12 cent carry, H/K 10 ½ cent carry, N/X 18 ¾ cent inverse.

· Argentina has a chance for rain in the 11-15 day outlook, but not much rain is expected from the system. The southern part of Brazil will see some rain to slow net drying, but it will be followed by drier weather. Significant crop stress is not expected in Brazil.

· StatsCan reported soybean production in Canada continuing to rise year on year, reaching another record high in 2017 at 7.7 million tonnes.

· The late harvest of canola in Canada allowed for better than expected yields. This morning StatsCan reported Canola production at 21.3 million tonnes for 2017, an 8.7% increase from 19.6 million tonnes in 2016.      

Wheat

Chicago wheat traded 5 ¼ - 7 ½ cents lower, Kansas City traded 7 ¾ - 8 ¼ cents lower and Minneapolis trade was 3 ¾ - 12 ½ cents lower. The Minneapolis premium over KC and Chicago is $1.89 ¼ - 1.87 ¾ for March contracts and $1.84 ½ - 1.82 ¾ for May contracts.

Current Spreads: Chicago H/K 12 ½ cent carry, KC H/K 12 ¾ cent carry, Mpls H/K 8 cent carry, Mpls K/N 4 ¾ cent carry.

· There are no significant rains projected for US hard winter wheat country in the front half of December.

· There are better than normal crop conditions in Russia but in comparison to last year, they are poorer.  

· According to StatsCan, wheat production in Canada is down 5.5% from last year, but surpassed trade expectations of 28.0 million tonnes by coming in at 30.0 million tonnes for 2017. Canada’s spring wheat number came in at 22,167,000 million tonnes compared to last year at 20,454,000 million tonnes.

· Large Black Sea region supplies also pressured the wheat market today.

· Jordan bought 100,000 tonnes of hard milling wheat, optional origin, in a tender Wednesday.

Livestock

The cattle markets were weaker today as February cattle settled $1.35 lower at $119.275 while April cattle were down $1.00 at $120.625. Feeder cattle traded lower, showing a $1.725 loss on January feeders at $146.025 and a $1.775 loss on March feeders at $144.10.

· Beef packer margins came in at $41.15/head.

· Boxes were lower today. Choice traded down $2.26 at $206.82 and Selects were down $1.61 at $185.02.

Lean Hogs traded lower today as the February contract closed lower by $1.55 to settle at $68.95 while the April contract traded $1.35 lower at $72.975.

· This morning’s carcass values were $1.34 lower at $83.44. Bellies were $1.03 higher at $146.03 with 193.53 loads traded.

· Pork packer margins came in at $45.40/head.