Morning Highlights


Highlights

  • Weekly export sales out tomorrow morning.
  • Energy markets are trading higher.
  • DJIA, S&P, NASDAQ are trading higher. The US$ is slightly lower and gold is stronger again this morning. 

Corn

  • The corn market traded higher, continuing its rangebound trade. The overnight trading range was 1-3 cents across most months.
  • The March contract sits above its 50-Day MA of $3.78 ½. Resistance is seen at $3.80 with support at $3.70.
  • Bitter cold temps move across the US over the next couple of days with much warmer temps expected over the weekend.
  • Brazil’s corn harvest has begun in their southern region with early reports of lower than expected yields.
  • Spreads: H/K 8 ¾ carry, N/U 2 ½ carry. 

Outlook:  higher trade on crop concerns in Brazil 

Oilseeds

  • The soybean market traded higher overnight on crop concerns in Brazil and hopes for a resolution to the trade war and increased demand for US soybeans.
  • Palm oil closed up 9 at 2,303 ringgits. China beans were down 8 cents.
  • The March sits at $9.24, levels we were at back in December, trading in a 7-cent trading range.
  • Brazil’s soybean harvest progresses with more reports of disappointing yields from dry weather.
  • Spreads: H/K 13 ¾ carry, H/X 39 carry. 

Outlook: higher trade awaiting signs of improving demand and crop worries in Brazil 

Wheat

  • The wheat market bounced overnight, after disappointment over Egypt’s tender.
  • Mpls March sits just above its 20-Day MA at $5.69. the KC March bounced off $5.00 support level overnight.
  • Cold weather across the Southern Plains raises concerns about possible damage in areas where there is little or no snow cover.
  • Spreads: Mpls H/K # ¼ carry, Kansas City H/K 9 ¾ carry, Chicago H/K 6 ¼ carry. 

Outlook: slightly higher on cold weather snap across the winter wheat belt