Morning Highlights


Highlights

  • CHS Hedging has scheduled an Introduction to Technical Analysis class on January 10th, 2020. In addition, CHS Hedging will offer an Energy Class on January 23rd, 2020. To register for these classes please go to http://chshedging.com and click on the appropriate link to the class or classes you may be interested in attending.   
  • The Chinese Agriculture Ministry is planning on reducing the number of small-scale slaughterhouses in order to better prevent African swine fever.
  • The U.S may drop some of the tariffs placed on $112 billion of Chinese imports in September.
  • The November WASDE report will be released this Friday, November 8th, at 11 AM CT.
  • As of 7:00 AM: Crude oil up .55 at 57.09, Dow futures up 82 points at 27,462, and the U.S$ index up 147 ticks at 97.652.                          

 Corn

  • Corn is trading slightly higher this morning as harvest progress came in behind the average estimates.
  • The crop progress report showed that corn mature increased 3% from last week, now at 96% mature, vs the 5-year average of 100% mature.
  • U.S corn harvested is now set at 52% harvested, compared to 41% harvested a week ago and the 5-year average of 75% harvested at this time.  
  • Crop Specialist Dr. Michael Cordonnier left his corn yield estimate at 162 bpa, however he stated that he believes the estimate may be too low due to yield reports coming in better than expected.
  • Dr. Cordonnier lowered his Argentinian corn estimate by 1.0 million tons to 49.0 million tons due to poor weather conditions and the concern of additional export taxes on corn moving acres from corn to beans.
  • Spreads: Z/H 9 ¾ cent carry; H/K 6 ¾ cent carry; K/N 6 ¼ cent carry; Z/N 22 ¾ cent carry.

Outlook: Sideways to higher trade as harvest continues to lag behind and the market awaits the USDA report on Friday.

 Oilseeds

  • Soybean futures are trading lower overnight as harvest continues to make progress and there are little supportive trade war headlines to push the market higher.
  • The crop progress report showed soybean harvest at 75% complete, in line with estimates and below the 5-year average of 87% complete.
  • Malaysian Palm oil futures finished lower after reaching an almost two year high during the session, palm oil has gained over 17% since the middle of October.
  • Dr. Michael Cordonnier stated that he expects a small reduction in soybean yield and harvested acres on the November crop report but left his estimate of 46.0 bpa unchanged.
  • Spreads: F/H 13 ¼ carry, F/N 35 ¼ carry, H/K 12 carry.

Outlook: Sideways to lower as the markets await some sort of confirmation that a trade deal will be completed between the U.S and China.

 Wheat

  • Wheat markets trading a few cents higher overnight due to supportive demand in the world market.
  • The lowest offer for Egypt’s GASC tender came in at $214.86 a tonne for 60,000 tonnes of French wheat.
  • The Philippines purchased approximately 35,000 tonnes of feed wheat in a tender, most likely to be sourced from Australia.
  • Japan’s Agriculture Ministry is seeking 123,928 tonnes of food-quality wheat in a tender, sourced from the U.S, Canada and Australia.
  • U.S winter wheat planting came in at 89% planted, slightly ahead of the 88% planted 5-year average. Winter wheat emergence was reported at 71% emerged, vs the 5-year average of 74%.
  • U.S winter wheat is rated as 57% G/E, up 1% from last weeks ratings.
  • Spreads: Chicago Z/H 6 ¼ cent carry; Kansas City Z/H 12 cent carry; Minneapolis Z/H 16 ½ cent carry.

Outlook: Trading slightly higher today as world demand picks up again and Russia seems to be losing its dominance in the world market.