Morning Highlights


Highlights

  • January options expiration takes place on December 27 for corn, wheat, soybeans, soymeal and soy oilFirst 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.
  • China said the details of Phase 1 won’t be public until the deal is signed. The US trade advisory panel said the Phase 1 agreement is way more detailed than they thought.  The increased ag purchases appear to be weighted towards year 2. It also says there are specific reasons that will allow China to reduce its commitments.     
  • Outside markets as of 7:30 AM Central: January crude oil $60.83 down $0.10 per barrel; gold at $1,474.50 down $0.20; DJIA at 28,239 down 28; US Dollar Index at 97.406 up 0.006.

     

Corn

  • Corn is a penny lower in overnight trade.

  • Export sales were 1,709,300 compared to expectations of 1,200,000-2,000,000.

  • Brazil is expected to double their corn based ethanol production this year.

  • Argentina

  • Spreads: H/K 6.50 cent carry; K/N 5.75 cent carry; N/U 0.75 cent inverse; U/Z 2.25 cent carry.

     

Outlook:  The corn market is trading both sides of unchanged without a market driving story.

 

Oilseeds

  • Soybeans at down 6 cents in overnight trade as profit taking has stalled the latest rally.

  • Export sales were 1,430,600 compared to expectations of 950,000-1,400,000.

  • The dry areas in Argentina are averaging less than 50% of normal precipitation in December.  

  • Traders have indicated that China has purchased 2 additional soybean cargoes this week after receiving a new tariff free quota.   

  • Spreads: F/H 12.5 cent carry; H/K 13.75 cent carry; K/N 11.5 cent carry; N/Q 4 cent carry.

 

Outlook: 5 lower on profit taking.

 

Wheat

  • The wheat markets are up 2 to 3 cents in overnight trade.

  • Export sales were 868,600 compared to expectations of 200,000-600,000.

  • Germany winter wheat area is down by roughly 7% this year. The acreage reduction is due to an increase in rapeseed plantings.

  • Egypt is resuming cargo checks at ports of origin.  The process stopped in 2016 over controversy whether the inspectors were doing their job or just using the position to travel the world.

  • Spreads: Chicago H/K 3.50 cent carry; Kansas City H/K 8.25 cent carry; Minneapolis H/K 8 cent carry.

 

 

Outlook: 2-3 better as choppy trade across the wheat markets continues.