Morning Highlights


Highlights

  • The corn and soybean markets stabilized overnight after yesterday’s sell off.  Wheat markets continue to test contract lows on large world supplies and a decrease in demand for U.S. wheat.  Gold breaks $1,200 per ounce for the first time since June.
  • As of 6:36 AM CT.  The US dollar is up 0.404 at 80.509 and Crude oil is down $0.02 at $97.78 per barrel.  Dow futures are up 32.00 pts. at 15,842.00, S&P up 2.50 at 1,775.50 and Nasdaq futures up 4.00 at 3,464.75.  Gold is trading dow $31.30 at $1,203.70 per ounce. 
  • Weekly Export Sales will be released at 7:30 AM CT.
  • Overnight volumes were weak for corn and wheat while soybean volume was modest.

Corn

  • Export estimates are calling for 550,000-750,000 MT.
  • Brazilian corn areas are forecast for mostly dry conditions into the weekend with high temperatures in the upper 80’s to low 90’s.  Conditions remain mostly favorable for the developing corn.  Argentine corn areas are forecast for temperatures in the 90’s to 100’s with light scattered showers seen late this week into early next week.  Soil moisture reductions and hot temperatures should increase stress on the developing corn crop.    
  • U.S. officials are in Beijing discussing the GMO issues.  U.S. officials are indicating  a resolution will be make quickly.   

Outlook: Trading steady to mixed…

Oilseeds

  • Export sales estimates for soybeans are 700,000-900,000 MT, Soymeal 150,000-300,000 MT and soyoil 10,000-30,000 MT. 
  • Malaysian palm oil was up 21 ringgits overnight on thoughts of increasing exports from Malaysia.  A weak ringgit is also seen as supportive.  Malaysia is the second largest producer of palm oil following Indonesia. 
  • Open interest continues to decrease in the January contracts as first notice (Dec 31) and expiration (Jan 14) move closer.  There are 132,000 soybeans, 58,100 soyoil and 45,100 contracts of soymeal open in the January contracts. 
  • Soybean futures in India were lower as a drop in the rupee and weak demand pressure prices. 

Outlook: Look for 1-3 higher…    

Wheat

  • After hitting contract lows the market is seeing stabilization and some anticipate we are seeing some fund short covering ahead of the New Year.
  • In overnight export news, Iraq purchased 350,000 MT of Australian wheat.
  • Weekly export sales for wheat are expected to range from 300,000-400,000 MT

Outlook: Steady calls…