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 November WASDE report will be released this Friday, November 8th, at 11 AM CT.
  • China’s foreign ministry stated that they will resume imports of Canadian pork and beef, and approved the import of poultry, beef, and pork from 20 French companies.
  • The U.S and China continue to look for a meeting place to sign “phase one” of the trade deal, with possible locations including Greece, Iowa, Alaska, and Hawaii.
  • As of 7:00 AM: Crude oil down 0.21 at 57.02, Dow futures up 31 points at 27,452, and the U.S$ index down 172 ticks at 97.811.                          

 Corn

  • The corn market is trading slightly higher overnight but continues to be rangebound as the market awaits the report on Friday.
  • South Korean groups MFP and KFA purchased a total of 201,000 tonnes of corn in private deals on Tuesday without a tender, the purchase is sourced from optional origins.  
  • Ethanol production is expected to have increased again this week, after 5 consecutive weeks of increased production numbers.
  • The trade is estimating the USDA yield projection will be released at 167.5 bpa, compared to last month’s 168.4 bpa.
  • 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: Improved weather conditions will allow for an increase in harvest progress which will pressure the markets, but until the market finds some direction from the report on Friday, the market will continue to be range bound.

 Oilseeds

  • Soybean markets continue to lack direction and traded within a narrow range overnight.
  • The trade is expecting a friendly report on Friday for soybeans. Harvested acres are expected to fall to 75.4 million acres, previously 75.6 million acres, due to the resurveying of Minnesota and North Dakota. The average trade estimate for yield is set at 46.6 bpa, compared to the USDA’s estimate of 46.9 bpa.
  • Brazilian farmers are planning to campaign to end a ban by trading firms that prohibited the purchase of soybeans from parts of the Amazon cleared after 2008.
  • According to Reuters, the Malaysian palm oil export forecast for October is up 12.1% from September, at 1.59 million tonnes, and output for October is expected to be up 2% from September, at 2.52 million tonnes.
  • Spreads: F/H 13 ¼ carry, F/N 35 ¼ carry, H/K 12 carry.

Outlook: The market will continue to have little to no direction until there is some confirmation of progress on the trade deal and until the report on Friday.

 Wheat

  • Wheat markets steady to higher today after business picked up a little yesterday with the Egypt tender for 175,000 tonnes of wheat and planting progress for KC wheat remains lower than expected.
  • Paris milling wheat futures are higher due to the business they managed to secure in yesterdays tender.
  • A private industry source is estimating Australian wheat production at 15.54 million tonnes, almost 20% lower than the official Australian estimate.
  • 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 due to an increase in world demand and concerning planting progress for KC wheat.