Morning Highlights


Highlights

  • US/Chinese trade talks are scheduled for this week (Jan 30-31).
  • Some rain is expected for Brazil although the central and northeastern parts are expected to remain dry.Argentina is expected to see rain showers this week.
  • There are no details yet on when the USDA will release their January 11th report data. It could be as early as this week or as late as their regularly scheduled S&D update on Feb 8.
  • South Korea detects first case of foot and mouth disease since March of 2018.
  • Energy markets are weaker this morning with crude oil down 98 at $52.71/barrel.
  • The US$ is slightly higher, gold is a buck higher, the CD$ is slightly lower.
  • Wall Street is on the defensive this morning. 

Corn

  • The corn market traded 1-2 cent ranges overnight. Support comes from the adverse weather in SA and ideas of a smaller corn yield for the final production numbers.
  • March is holding above most moving averages and 8 cents below its 200-day MA. The 200-Day MA is at $3.88.
  • Spreads: H/K 8 ½ carry.......K/N 7 ¾ carry........N/U 2 ½ carry.......U/Z 4 ¼ carry. 

Outlook:  steady, awaiting fresh supportive news 

Oilseeds

  • The soybean market traded lower on lack of fresh supportive news. The market awaits any outcome of this week’s US/Chinese traded talks.
  • The March sits just below its 200-Day MA of $9.22 ½.
  • Prices garnered support from ideas of sizable reductions to the Brazilian bean crop from continued dryness.
  • Malaysian palm oil traded higher on borrowed strength in other edible oil markets. April closed at 2,327, up 33 ringgit.
  • Spreads: H/K 13 ¾ carry......H/X 39 carry......K/N 12 ¾ carry...... 

Outlook: lower trade on rains in Brazil and lack of Chinese interest in US soybeans 

Wheat

  • The wheat market traded higher on hopes of improving demand for US wheat.
  • Russian wheat exports are expected to back off.
  • Mpls H/K at a 2 ½-3 cent carry.Consider rolling short March hedges to the May at current levels.It feels like it wants to go to even money.
  • The Southern Plains braces for this week’s snow and blast of super cold temperatures. 

Outlook: higher on hopes of improving demand for US supplies