Morning Highlights


Highlights

  • China said today that they will waive tariffs on some U.S. soybean and pork shipments from the U.S. as a gesture of goodwill, however, the quantity of the waivers has not been released at this time.
  • The U.S. tariffs scheduled to go into effect against Chinese goods on December 15th are still on the table at this point.
  • The CFTC Commitment of Traders report will be released at 2:30 PM Central.
  • First notice day for December live cattle is Monday, December 9th.
  • The next WASDE report will be released on Tuesday, December 10th at 11:00 AM Central. Trade estimates expect to see little change from the November report.
  • Outside markets as of 7:00 AM Central: January crude oil $58.18 down $0.25 per barrel; gold at $1,474.70 down $2.20; DJIA at 27,677 up 28; US Dollar Index at 97.430 up 0.020.

 Corn

  • Corn traded higher overnight, with the March contract currently just below its 20-day moving average of $3.80 ½. The market continues to remain in a narrow range.
  • The French corn harvest was 94% complete versus 92% last week.
  • There were 66 deliveries of corn.
  • Spreads: H/K 6 cent carry; K/N 4 ¼ cent carry; N/U 1 ¼ cent inverse; U/Z 3 ¾ cent carry.

 Outlook:  1-2 higher

 Oilseeds

  • Soybeans traded higher overnight, drawing on optimism about a U.S.-China trade deal. After three days of good gains, January soybeans are getting back within range of their 20-day moving average of $8.98 ½.
  • There were 148 deliveries of soymeal and 711 deliveries of soyoil.
  • Chinese soybeans were up 7 ¾ and settled at 3,871 yuan per tonne, soymeal was up 2.40 and settled at 2,761 yuan per tonne, and soyoil was up 30 and settled at 6,310.
  • Malaysian palm oil for February was up 43 ringgits and settled at 2,858.
  • Spreads: F/H 14 ½ cent carry; H/K 14 ½ cent carry; K/N 13 cent carry; N/Q 4 ¼ cent carry.

 Outlook: 6-8 higher on trade optimism

 Wheat

  • The wheat markets were firmer across the board, with spring wheat leading and the winter wheat markets following. March spring wheat briefly traded above its 20-day moving average of $5.18 ¼ before dipping back below. The contract hasn’t closed above it’s 20-day moving average since October.
  • Russia’s wheat crop is expected to be 75 million tonnes, up from 72 million tonnes in 2018 according to the country’s agriculture ministry.
  • The French wheat planting was 83% compete versus 80% from the week prior and 99% last year.
  • There were 0 deliveries of Chicago wheat, 2 deliveries of Kansas City wheat, and 10 deliveries of Minneapolis wheat.
  • Spreads: Chicago H/K 4 ¼ cent carry; Kansas City H/K 7 ¾ cent carry; Minneapolis H/K 8 ¾ cent carry.

  Outlook: 2-4 higher