Morning Highlights


Highlights

  • The weekly export sales data is expected at 7:30 this morning.The estimates are included below.
  • As of 6:30 am central time: Dow Jones Index futures are up 80.The US Dollar Index is basically flat…down 2 points.WTI crude oil futures are down 5 cents a barrel.
  • The signup period for the 1-year fall 2020 and the 2-year fall 2021 CHS Pro Advantage programs close December 11, 2019, for more information click: www.chshedging.com/chs-pro-advantage
  • Last trade day for December grain options is next Friday, November 22. 

Corn

  • Corn bids continue to be firm across the eastern corn belt.We have observed at one eastern Indiana location posted at +42Z for Nov and one central Illinois location posted at +20Z for Nov.
  • Corn Export Sales are expected to be between 400-800 TMT.Last week was 487.6 TMT.
  • Spreads this morning: Z/H 8 ¾ cent carry; Z/K 14 ¾ cent carry; Z/N 20 ¾ cent carry.

 Outlook: Futures traded both sides of unchanged overnight.  Unless there is a surprise in the export sales report, we expect a choppy start to day session. 

Oilseeds

  • The northern Brazilian soybean states of Mato Grosso, Goias and Minas Gerais are expecting 1-2 inches of rain, however the rest of the Brazilian growing region are expected to be dry over the next 5 days.The 6-10 days forecast for Brazil also looks a little dryer this morning than yesterday.
  • Soybean export sales are expected to be between 800-1,400 TMT.Last week’s sales totaled 1,807.4 TMT.Meal sales are expected to be between 100-350 TMT, last week was 262.4.The trade guess for bean oil sales 5-25 TMT, last week was 3.9TMT.
  • Spreads this morning: F/H 12 ¾ cent carry; F/N 34 ½ cent carry; N/X ¾ cent carry. 

Outlook: It has been a choppy two-sided trade overnight.  However, with the Brazilian forecast looking dryer and meal futures starting to find a bid, futures have turned a little higher ahead of the release of the export sales report. 

Wheat

  • The guesses for wheat export sales are range from 250 to 500 TMT.Last week’s sales were 360.6 TMT.
  • Yesterday’s Egyptian tender concluded with GASC purchasing 8 offers for a total of 465 TMT of wheat.All 8 of these tenders equated to between $231.98 and $232.35 per tonne delivered.All these offers came from either Ukrainian or Russian origin.
  • Spreads this morning: Chicago Z/H 3 ½ cent carry; Kansas City Z/H 8 ¾ cent carry; Minneapolis Z/H 15 cent carry. 

Outlook: Flat to 2 lower, pending the export sales results.