Morning Highlights


Highlights

  • January options expiration takes place on December 27 for corn, wheat, soybeans, soymeal and soyoilFirst Notice Day for January futures takes place on December 31, with all long positions being reported after the close on December 30.
  •  The November Cattle on Feed report is scheduled for this Friday at 2 PM Chicago Time.     
  • Mexico and the US have worked out their differences on the USMCA.  The house could vote on the bill on Thursday.     
  • Outside markets as of 7:00 AM Central: January crude oil $60.37 up $0.16 per barrel; gold at $1,479.70 up $1.80; DJIA at 28,235 up 100; US Dollar Index at 97.039 up 0.02.

     

Corn

  • Corn is unchanged to a tick lower in overnight trade.

  • There is a Bloomberg story out this morning that China may restart purchases of ethanol by lifting or waiving tariffs. This will help China achieve the ag purchase target outlined in the agreement.

  • Corn export inspections were 687,000 tons which was above expectations. This is the highest total of the marketing year.

  • Spreads: H/K 6.75 cent carry; K/N 5.5 cent carry; N/U 1.5 cent inverse; U/Z 2 cent carry.

     

Outlook:  unchanged as the market pauses for fresh news.

 

Oilseeds

  • Soybeans at slightly higher in overnight trade trying to keep the post tariff agreement rally going.

  • NOPA crush of 164.9 million bushels was well below the average expectation for 172.0 million bushels. Oil stocks were expected to hold steady but increased slightly from 1.423 to 1.448 billion pounds.

  • Soybean export inspections were 1.3 million tons which was right in line with expectations.   

  • The biodiesel tax incentive is part of latest spending bill. The current proposal will retroactively extend the $1 per gallon credit from 2018 to 2022.

  • Brazil is working with China on health standards so that Brazil can export soybean meal to China.

  • Spreads: F/H 13.5 cent carry; H/K 14 cent carry; K/N 12.25 cent carry; N/Q 3.50 cent carry.

 

Outlook: 2 higher as hopes for a post tariff rally continues.

 

Wheat

  • The wheat markets are a few cents lower in overnight trade following yesterday’s huge rally.

  • Wheat export inspections of 506,000 tons were above trade expectations. 

  • Yellow rust is spreading to key wheat growing regions in China and is expected to trim production.

  • Spreads: Chicago H/K 1.75 cent carry; Kansas City H/K 7.75 cent carry; Minneapolis H/K 8 cent carry.

Outlook: 1-3 lower as the market takes a pause following yesterday’s huge rally.