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.     
  • The House is expected to vote on the USMCA on Thursday.  The Senate will most likely get the bill sometime in 2020.
  • Pork prices in China have declined for the fourth week in a row.      
  • Outside markets as of 7:00 AM Central: January crude oil $60.57 down $0.37 per barrel; gold at $1,473.80 down $3.20; DJIA at 28,267 up 31; US Dollar Index at 97.451 up 0.229.

     

Corn

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

  • A joint venture between ag/energy heavyweights COFCO, Amaggi, and Shell are looking to build corn ethanol plants in Brazil.

  • Ukrainian corn exports jumped up by 800,000 tons from October to November from 2.3 to 3.1 mmt.

  • Argentina raised export taxes on corn from 12% to 15%.

  • Spreads: H/K 6.50 cent carry; K/N 5.5 cent carry; N/U 2 cent inverse; U/Z 2.25 cent carry.

     

Outlook:  2 lower as the rally is hitting a setback on the lack of fresh bullish news.

 

Oilseeds

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

  • Argentina has raised export taxes on soybean from 30% to 33%.

  • The latest US spending bill has biofuel tax credit measures attached. A $1 per gallon credit is retroactive to 2018 and goes through 2022.    

  • Spreads: F/H 11.5 cent carry; H/K 14 cent carry; K/N 12 cent carry; N/Q 3.50 cent carry.

 

Outlook: 4 lower on profit taking.

 

Wheat

  • The wheat markets are off a nickel in overnight trade following taking a pause on the latest rally.

  • Wheat has found some support from the newly imposed taxes in Argentina as world market could look to the US to make up for shortfalls out of Argentina.

  • Ukrainian wheat exports in November were down 500,000 tons from October.

  • Spreads: Chicago H/K 2.50 cent carry; Kansas City H/K 8.25 cent carry; Minneapolis H/K 8 cent carry.

Outlook: 1-8 lower on profit taking after hitting recent highs.