Afternoon Market Highlights


Wishing you all a Safe and Happy New Year!

 

Highlights

Busy day as farmers get their end of yearend dealings in order. Very thin trade in the grain markets ahead of the New Year’s Day Holiday.  Next week we should see most of the trade back in the game, with the focus on what the USDA will report for their final corn and soybean production numbers. The trade deal is set to be signed and then the waiting begins to see when China buys, what China buys, and how much China buys. 

  • The energy markets are mostly weaker with crude oil down 59 cents at $61/barrel.
  • The US$ stays weak, down 248 at 96.49, the gold market is stronger, up 4-5 bucks at $1,522/ounce and the CD$ is up 0.0041 at 0.77046 (was at 0.75215 on December 3rd).
  • DJIA down 41 at 28420, S&P down 1 at 3222 and the NASDAQ up 10 at 8956.
  • President Trump announced this morning that the Phase One trade agreement is a done deal and the signing ceremony will take place at the White House on January 15, 2020.
  • Grain markets will be closed tomorrow in observance of the New Year’s Day Holiday. Trading will resume Thursday at 830 AM CST.
  • The USDA report is scheduled for January 10th at 11 AM CST, which will include final production numbers, updated US and world balance tables, Dec 1 On/Off Farm Grain Stocks and the first assessment of the 2020 winter wheat seedings.     

Corn

Corn prices were weaker on lack of fresh supportive news and year-end, month-end positioning in thin trade. Most months saw a very narrow trading range (2-4 cents). The market now awaits the USDA’s final crop production report on Jan 10th. 

  • Closes: March at $3.78 ¾, down ½ cents, July at $4.01, down ½ cent, September at $4.01, down ½ cent and December at $4.02 ½, down ½ cent.
  • Gulf premiums were mostly steady for January.
  • Dec 20 corn closed at $4.11 on December 31, 2018 and today we closed at $4.02 ½.
  • Spreads: H/K 7 carry, H/N 13 carry, K/N 6 ½ carry, N/Z 1 carry.

 Oilseeds

Soybean prices finished the day in positive territory. Most months saw a 5-10 cent trading range. This is a good time for farmers to consider selling soybeans as we have seen a fairly decent rally since early December. 

  • Closes: March at $9.55 ½, up 3 cents (Dec 31, 2018 close was at $9.53 ¾), July at $9.79 ¾, up 2 ¼ cents and November at $9.78 ¾, up 1 ¾ cents (Dec 31, 2018 close was at $9.64 ¾).
  • Gulf premiums were 2 cents firmer for January.
  • On December 2 the November beans closed at $9.24 ¾, and today we closed at $9.78 ¾.
  • Spreads: H/K 12 ¾ carry, K/N 11 carry, N/X 1 inverse, X/F 2 ¼ carry. 

Wheat

Wheat prices carried on again today in this trade ahead of the New Year Day Holiday.  It seems to be all about what China will buy after the Phase One signing on Jan 15 and after the 30-day grace period. The wheat market could be getting a bit overdone to the upside. Consider making that sale while the opportunity is here. 

  • March closes: Mpls at $5.61, up 4 cents, KC at $4.94 up 5 cents, Chicago at $5.58 ¾, up 2 ¾ cents.
  • Talk is that there was less winter wheat planted this fall and that the USDA will show a smaller acreage number in their Jan 10 winter wheat seeding report.
  • Ukraine, Russia and Australia are dry. EU getting some much needed moisture once again.
  • Spreads: Mpls H/K 9 carry, Kansas City H/K 8 ½ carry, Chicago H/K 3 ¼ carry.