Morning Highlights


Highlights

  • First notice day for December grains, soymeal and soyoil is on Friday, November 29th. Longs should be out of their positions by the close on Wednesday to avoid risking delivery.
  • Wintry weather is expected across the northern plains and Midwest this week, which will further delay the remaining harvest and fieldwork.
  • U.S. national security advisor Robert O’Brien said that an initial deal with China could still occur before the year end but warned that Chinese activities throughout the world, such as goings-on in Hong Kong, would not be ignored.
  • A Chinese newspaper reported that the U.S. and China are “very close” to a trade deal.
  • Reports indicated that Taiwan is expected to buy more U.S. goods, including oil, gas, and agricultural products, to avoid being labeled as a currency manipulator.
  • Outside markets as of 7:00 AM Central: January crude at $57.68 down $0.09; gold at $1,457.30 down $6.30, DJIA at $27,875.62 up 109.33 points, US Dollar index at 98.314 up 0.044.

 Corn

  • Corn traded higher overnight, drawing on strength in the wheat markets. Poor weather is expected later this week, which will hinder the remaining harvest. The crop progress report this afternoon will likely show corn harvest between 85 and 95% complete.
  • Information released by China’s General Administration of Customs showed corn imports for October up 12.8% from the same period last year.
  • Spreads: Z/H 10 cent carry; H/K 5 cent carry; K/N 5 cent carry; Z/N 20 cent carry.

 Outlook:  1-2 cents higher

 Oilseeds

  • Soybeans traded higher overnight, as the market continues to watch for headlines related to the U.S.-China trade war.
  • Information released by China’s General Administration of Customs showed soybean imports for October up 10.7% from the same period last year.
  • Malaysian palm oil was down 15 ringgits and settled at 2,773.
  • Chinese soybeans were down 3 ¾ and settled at 3,382 yuan per tonne, soymeal was up 0.50 and settled at 2,750 yuan per tonne, and soyoil was up 13 and settled at 6,392 yuan per tonne.
  • Spreads: F/H 14 cent carry; H/K 13 ¾ cent carry; K/N 11 ¾ cent carry; F/N 39 ¾ cent carry.

 Outlook: 1-3 cents higher

 Wheat

  • The wheat markets were stronger overnight, as concerns grow that there could be too much wet weather for the winter wheat crops before they go dormant. Crop progress will be released this afternoon, providing additional insight into the condition of the crop. Overnight strength in Minneapolis is likely a bounce, as that market is oversold and has been getting closer and closer to contract lows.
  • Ethiopia has issued an international tender for 75,000 tonnes of milling wheat.
  • China sold 2,380 tonnes of wheat for approximately 2,000 yuan per tonne from their state reserve at auction
  • Information released by China’s General Administration of Customs showed wheat imports for October up 24.5% from the same period last year.
  • Spreads: Chicago Z/H 3 ½ cent carry; Kansas City Z/H 9 ½ cent carry; Minneapolis Z/H 13 cent carry.

 Outlook: Higher across all three markets