Afternoon Market Highlights


Highlights

It’s holiday time and the ag markets were extremely quiet.  Many positions were squared away earlier in the week. There will be no ag markets tomorrow in observance of the Thanksgiving Day holiday. Friday is a shortened trade day. No Phase One deal yet although talks continue to take place as both sides work on hammering out the final details that would lead to an agreement and an agreement to actually sign the agreement.     

  • All long positions will be reported after the close of business today. Check your open decks, if you have not done so already, and clean up the left overs, so there are no surprises next week.
  • Weekly exports sales data to be released Friday morning.
  • Ag markets close after today’s session and resume trade on Friday morning at 830 AM CT.
  • CHS annual meeting is scheduled for December 5-6. We have some great presentations prepared for you. Great way to interact with CHS folk and fellow members.
  • The energy markets are on the defensive with crude oil down 29 cents at $58.12/barrel.
  • The US$ Is up 144 at 98.39, the gold market is down 5-6 bucks at 1459 and the CD$ is down 0.00045 at 0.7532.
  • DJIA is up 42 at 26184, S&P up 10 at 3154 and NASDAQ up 57 at 8705. 

Corn

Corn prices traded lower on fund selling and slowed export demand. There are concerns about this weekend’s snowstorm across the US Midwest.  Much of the corn that is still in the fields are thought to remain in the field until later this winter or next spring. The next USDA report is scheduled for December 10th with questions about whether they will make additional adjustments to the corn yield. 

  • Closes: December at $3.62 ¾, down 4 ¾ cents, July at $3.84 ¼, down 5 ¼ cents, September at $3.84, down 5 cents, red December at $3.89, down 4 ¼ cents.
  • December closed 10 ½ cents above its contract low of $3.52 ¼. The last trading day for the December contract is Friday, December 13.
  • Gulf premiums were unchanged to 3 cents firmer
  • Weekly export sales estimates: 400-900 tmt.
  • Weekly ethanol production saw its 9th week of increased production.Production was reported at 1,059,000 barrels per day, up 26k barrels per day. The stocks declined to 20.28 million barrels (down 237k barrels).
  • South Korea tendered for up to 69k tonnes of corn and bought 62k tonnes of optional origin corn at $208.38/tonne. Glencore was thought to have been awarded the business.
  • Spreads: Z/H 11 carry, Z/N 22 ¼ carry, Z/Z 26 ¾ carry, H/K 6 carry, H/N 11 carry. 

Oilseeds

Soybean prices were a freckle lower with losses limited from optimism over the US/Chinese trade agreement. Pressure came from spillover weakness in the corn market, pre-holiday and weekend fund selling, and favorable weather in SA.     

  • Closes: January at $8.82, down 2 ¼ cents, July at $9.23 ¼, down 2 ¾ cents, November at $9.30 ¾, down 3 ½ cents. The products were mixed with meal down 90 cents and oil up 15 points.
  • Gulf premiums were a penny firmer.
  • Weekly export sales estimates: 600 tmt-1.2 mmt for beans, 150-300 tmt for meal and 5-30 tmt for soyoil.
  • SA bean country to receive beneficial moisture next week. Argentina has a few areas that have gotten missed but chances for moisture are expected to be better next week.
  • Spreads: F/H 14 ¼ carry, F/K 28 ½ carry, F/N 41 carry, N/X 6 ¾ carry, X/F 4 ¾ carry.  

Wheat

The wheat market traded lower on lack of fresh supportive news and position squaring ahead of the holiday tomorrow and the weekend.  Global supplies are plentiful, and competition is fierce, which makes it tough for the US to compete. Deliveries against the December contract a re expected to be minimal. The spot floor rolled to basis the March contract today. 

  • December closes: Mpls at $4.88 ½, down 5 ½ cents, KC at $4.23 ¾, down 8 ¾ cents, and Chicago at $5.28 ½, down 1 ¾ cents.
  • Weekly export sales estimates: 300-600 tmt.
  • Jordan bought 60k tonnes of optional origin hard milling wheat at $239.20/tonne C&F for April. CHS was said to have been awarded the business.
  • Spreads: Mpls Z/H 20 ½ carry, (full carry is 26 cents), Kansas City Z/H 13 ½ carry, Chicago Z/H ¾ carry.