Morning Highlights


Highlights

  • The bloom appears to be coming off the rose in the market, traders are becoming more skeptical that tension between the US and China is easing. One sign, China has said they will be buying US commodities, however, they have not dropped or lowered tariffs. In fact, Mitsui is looking to become the intermediary for LGN (liquefied natural gas) for the US going to China.

  • Overnight, Asian stock markets were lower again, the Hang Seng lost 2.47% trading at 26,156.38. The Nikkei was off 417.71 points at 21,501.62, the Shanghai Index was off 16.152 trading at 2,649.80. The FTSE was off 151.24 at 6,770.60, the DAX was off 266.77 points at 10,932.73. The Dow Jones was down 799.36 points at 25,027.07.

  • Saudi Arabia oil minister Al-Falih said Saudi Arabia will curb oil production a million barrels a day for now.

  • Export sales will be released tomorrow due the passing of President George H W Bush.

 Corn

  • Corn traded lower overnight, in response to growing weariness to the trade truce.

  • Corn in China was up 1 ¾ cents trading at 1,888 yuan for May.

  • The EU expects to import 18.5 mmt of corn in the 18/19 season, that’s up 13% from last year.

  • Algeria tendered for two cargoes of corn for shipment Dec. 15 to 30th it is thought they paid $204.37 a ton. The corn will probably come from Argentina.

  • There were 69 corn deliveries bringing the total for the month to 77 contracts with the next available date June 2th.

Outlook:  1 to 3 cents lower on lack of follow through buying.

 

Oilseeds

  • The soy complex is weaker overnight, January soybeans were down 5 cents at $9.08 ½, soybean meal is off $0.60 a ton at $311.30 a ton and soybean oil is down 19 point at $0.2865 per lb.

  • Brazil’s soybean exports to China in November were up 167%.

  • Soybeans in China were off 2 ¾ cents trading at 3,269 yuan. Soybean meal in China was up $1.70 at 2,727 yuan.

  • Malaysian palm oil was up 12 ringgit trading at 4,520 ringgits. Palm oil exports rose 50% in the first five days of December.

  • Algeria bought one cargo of soybean meal most likely from Argentina at an estimated price of $376.20 per ton.

  • There were no new soybean meal deliveries, the total to 338 contracts with the next available date at November 20th. There were 1,078 contract of soybean oil delivered.

Outlook: 4 to 6 cents lower as the trade truce fizzles.

 

Wheat

  • The wheat complex eroded again overnight with Chicago March wheat is off 4 ¼ cents, KC wheat is off 3 cents and Mpls spring wheat was up  half cent.

  • GASC has provided letters of credit for five more cargoes of wheat, bringing the total to eight. Eight cargoes remain unsecured, they’re expected to deliver Dec11-20th.  

  • Matiff wheat traded unchanged at 199.00 euros per tonne.

  • The EU commission said they expect the wheat crop to rise 1.4% to 129.2 mmt for 18/19 season

  • GASC, (Egypt’s commodity buyer) has not issued payment for 16 cargoes of wheat, 945 tmt of wheat, the cargoes were set to arrive by the end of November. Some cargoes have arrived.

  • There were 82 wheat deliveries in KC bringing the total to 877 contracts with the next available date Dec. 3rd. There were 140 contracts Chicago wheat deliveries with the next available date November 23rd, there was one redelivery in Mpls with the next available date November 16th. 

Outlook: 3 to 5 cents lower.