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 passed the USMCA on Thursday as expected. The Senate is expected to take up the measure after the impeachment trial in January.
  • China is planning to send their top trade negotiator to the US to sign the Phase 1 deal in early January.     
  • Outside markets as of 7:30 AM Central: February crude oil $60.99 down $0.19 per barrel; gold at $1,478.50 down $1.70; DJIA at 28,377 up 138; US Dollar Index at 97.523 up 0.144.

     

Corn

  • Corn is a tick or two higher in overnight trade.

  • Export sales were awesome yesterday posting the highest total of the year.  

  • The Trump administration finalized biofuel requirements but kept ethanol targets unchanged at 15 billion gallons.

  • Spreads: H/K 6.25 cent carry; K/N 5.75 cent carry; N/U 0.50 cent inverse; U/Z 2 cent carry.

     

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

 

Oilseeds

  • Soybeans are mixed moving up or down a tick or two in overnight trade.

  • Yesterday’s export sales for soybean meal were terrible posting the lowest total of the year.

  • Chinese consultancy JCI believes that China can easily hit the $40 billion target of the Phase 1 deal. They say that China could buy $18.7 billion worth of soybeans alone which equates to roughly 45 million tons.  

  • Palm oil has hit new highs, touching levels not seen in almost 3 years.   

  • Spreads: F/H 11.5 cent carry; H/K 13.50 cent carry; K/N 11.75 cent carry; N/Q 4 cent carry.

 

Outlook: holding around unchanged in a very quiet overnight session.

 

Wheat

  • The wheat markets are mixed with KC up 2 to 3 cents while Minny is down 1 in overnight trade.

  • Export sales yesterday were 868,600 which is the highest total of the year.

  • Iran has reportedly bought 1 million tons of wheat in the past few weeks. It is believed that the wheat is being sourced from Russia and the EU.

  • Japan buys 148,405 ton of food wheat in its latest tender. Canadian wheat accounted for 45% of the purchases.

  • Spreads: Chicago H/K 3.50 cent carry; Kansas City H/K 8.50 cent carry; Minneapolis H/K 7.75 cent carry.

 

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