Morning Highlights


Highlights

  • The US$ is stronger, gold is stronger and the CD$ is weaker.
  • The CME makes plans for launching a new wheat and corn contract effective December 18th. The Black Sea Wheat contract is based on the Platts Russian Wheat 12.5% FOB Black Sea Deep Water daily price assessment and the Black Sea Corn contract is based on the Platts Ukrainian Corn FOB Black Sea daily price assessment.
  • Energy markets are mostly higher.

Corn

  • The corn market traded lower on lack of fresh supportive news. December corn holds a couple cents above its new contract low of $3.40 ¾.   
  • Harvest activity continues for the next couple of days, with chances of rain Tuesday and Wednesday.
  • Harvest progress is estimated at 75-80% complete.
  • Weekly export inspections are not expected to be very good.
  • Spreads; Z/H 12 ½-12 3/4 carry, Z/N 28 ½-26 ¾.

Outlook:  lower trade on big crops

Soybeans

  • The soy complex traded lower on lack of fresh supportive news. The January contract is flirting with its 100-Day and 200-Day MA of $9.80 ½ & $9.80.  
  • Weekly export inspections are expected to be decent and the harvest is basically over.
  • January palm oil closed at 2761, down 36 ringgits and near three week lows on a stronger ringgit, weakness in US soy oil and slowing exports.  
  • China plans to step up the pace of SA soybean imports over the next few years going from 4.0 mmt to nearly 7.0 mmt. More competition for the US.
  • There were 137 deliveries posted against the November contract with last date assigned November 9th.
  • Spreads; F/H 11 carry, consider rolling Jan shorts to the March at current levels. H/K 9 carry and N/X at a 15 ¾ cent inverse.

Outlook:  lower trade on technicals, stronger US$ and lack of fresh news

Wheat

  • The wheat market traded lower on plentiful supplies of wheat and a stronger US$.
  • Jordan tenders for 100,000 tonnes of optional origin wheat.
  • Winter wheat planting is expected to be nearly complete.
  • Spreads; Mpls Z/H 11 ¼-12 ½, Kansas City Z/H 16 ¼ and Chicago Z/H at 17 ½. The Mpls premium over KC and Chicago is at $2.12-$2.14 in the Dec and $2.07-$2.09 in the March.

Outlook:   lower trade; lots of wheat around and a stronger US$