Afternoon Market Highlights


Highlights

The grain markets await the USDA’s 2019/20 final production numbers, Dec 1 Grain Stocks and the first assessment of the 2020 winter wheat seedings. The soybeans garnered support from next week’s trade agreement signing. 

  • The USDA January report is scheduled for Friday at 11 AM CST.
  • Chinese officials to travel to US to sign the Phase One trade agreement.
  • Energy markets are mostly higher with crude oil trading 11 cents higher at $63.16/barrel.
  • The US$ is down 163 at 96.67, the gold market is up 14 bucks at $1,566/ounce and the CD$ is up 0.0017 at 0.7715.
  • DJIA down 9 a 28625, S&P up 4 at 3239 and NASSDAQ up 28 a 9048.     

Corn

The corn market traded lower on lack of fresh supportive news and weakness in the wheat market.  A bout of profit taking and continued technical selling was noted in the corn market. The Middle East situation has investors taking a bit of risk out of their portfolios. 

  • Closes: March at $3.84 ¾, down 1 ¾ cents, July at $3.98, down 1 ¼ cents, September at $3.97 ½, down ¾ cent and December at $4.00, down ¾ cent.
  • CIF premiums were mostly steady.
  • Weekly export inspections were 551 tmt, in-line with trade estimates (400-600 tmt).
  • A private analyst pegs Brazil’s summer corn crop at 25.75 mmt (down 3.4%) and their 2nd corn crop at 71.97 mmt versus 72.1 mmt previously. The reductions come from extended dryness in southern Brazil.
  • Spreads: H/K 6 ½ carry, H/N 13 carry, K/N 6 ¼ carry, N/Z 1 ¾ carry. 

Oilseeds

Soybean prices opened lower on leftover fuel from last Friday. Prices turned higher on renewed energy about the Phase One trade agreement and ideas that the market was a bit oversold. There were renewed hopes of China buying US soybeans after next week.   

  • Closes: March at $9.44 ¾, up 3 ¼ cents, July at $9.70 ½, up 2 ¾ cents, November at $9.74, up 2 ½ cents. The products were mixed with meal up 1-2 bucks and oil down 57 points (on weakness in the Palm oil market).
  • CIF premiums were mostly steady.
  • Weekly export inspections were 964 tmt, near the top end of the trade estimates (500 tmt-1.0 mmt).
  • Widespread rains are expected to travel across Brazil next week.
  • Spreads: H/K 13 ½ carry, H/N 25 ½ carry, N/X 3 ½ carry, X/F 4 ½ carry. 

Wheat

Wheat prices opened lower on technical selling and a bout of profit taking. There was a fair amount of wheat sold by the farmer last week as they were taking care of year-end business needs. Prices drew additional support from the tension in the Middle East. 

  • March closes: Mpls at $5.48, up ½ cent, KC at $4.77 ¼, up 2 ¼ cents, Chicago at $5.50, down 4 ½ cents.
  • Ukraine and Russia suffer from adverse weather across their winter crops. Australia suffers from severe drought and more recently, wildfires in the western part, New South Whales and Queensland area.
  • Weekly export inspections were 345 tmt, in line with trade estimates (300-500 tmt).
  • Spreads: Mpls H/K 9 ¾ carry, Kansas City H/K 7 ¾ carry, Chicago H/K 3 ½ c arry.