Morning Highlights


Highlights

  • January grain options expire tomorrow, December 27th.
  • Weekly export sales will be released tomorrow because of the holiday shortened week.
  • Grain futures will close at their regular 1:20pm CT next Tuesday, December 31st, and will not re-open until 8:30am CT on Thursday, January 2nd.
  • Sign up for the Hedging Academy training class on January 9th by CHS Hedging is still available.  See our website for more information: CHS Hedging .
  • Outside markets as of 7:00am CT: Dollar up 50 at 97.682, Crude Oil up $.06 at $61.17, Dow up 30 at 28538 and Gold up $5.40 at $1510.20. 

Corn

  • Weekly ethanol production and stocks will be released at 9:30am CT this morning due to the holiday shortened week.
  • The March/May corn spread has weakened this month, with Tuesday’s trade settling at 6 ¾ cents carry.  9 ¾ carry has been the contract low. 

 Outlook:  Corn futures are consolidating sideways in an overbought condition, but lighter holiday trade may make it harder to resume a trend.  Steady to slightly higher early call. 

Oilseeds

  • China imported 2.6mmt of U.S. soybeans in November, more than double October’s amount and the largest in 20 months.
  • Palm Oil prices continue to rally, now near 2 year highs, on declining production estimates.
  • First Notice for Delivery of January contracts is Tuesday, December 31st. 

Outlook: Continued underlying support is expected as ideas for a Phase 1 deal being signed in January has not changed. 

Wheat

  • Increased chances for precipitation for western areas of the plains would be welcomed for wheat there.  Monthly state wheat conditions should be reported next week by some individual states.
  • Morocco has tendered for 350tmt of Durum wheat from the U.S., along with reports they will be suspending their 35% import duty through the first 4 months of the year; an official announcement is expected today.  A smaller than average wheat crop last year has boosted estimates on their need for imports.
  • Paris Milling Wheat futures went to new 5 month highs in Tuesday’s trade.  Euronext exchange and several other world futures exchanges are closed today. 

Outlook: KC and MPLS futures continue to consolidate gains in sideways trade, while Chicago has corrected lower over the past week.  Steady start to the day is expected.