Morning Highlights


Highlights

  •  January grain options expire today, December 27th.
  • Grain futures will close at their regular 1:20pm CT next Tuesday, December 31st, and will not re-open until 8:30 am CT on Thursday, January 2nd.
  • CFTC’s Commitment of Traders reports will be released Monday, December 30th, delayed one business day because of Christmas holiday.
  • 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 7:00 am CT: Dollar down 392 at 97.142, Crude Oil up $.05 at $61.73, Dow up 86 at 28705 and Gold up $.90 at $1515.30.

 Corn

  • Corn exports were 626.2tmt vs. estimates of 500tmt – 1.3mmt in today’s weekly export sales report, which was delayed one day due to the holiday shortened week.
  • BAGE estimated Argentina’s corn is 75.1% planted, about 5 ½ % ahead of average.  Conditions declined slightly due to dryness.
  • Weekly ethanol production and stocks will be released at 10:00 am CT this morning due to the holiday shortened week.
  • Total corn volume traded yesterday was 78,798 contracts, the smallest amount since December 24th, 2015. 

Outlook: A weaker Dollar, firm wheat prices and strong corn basis is helping corn return to the top of its consolidation range.    

 Oilseeds

  • Soybean exports were 747.3tmt vs. estimates of 700tmt – 1.55mmt, soymeal were 138tmt vs. estimates of 100-300tmt and soyoil were 37.4tmt vs. estimates of 5-30tmt.
  • First Notice for Delivery of January contracts is Tuesday, December 31st.
  • BAGE estimated Argentina’s soybean crop is 79.1% planted.
  • Both soyoil and palm oil traded to new contract highs in overnight trade.  Nearby soybean oil share at 34.8% is the highest level in over 2 years.

 Outlook: Continuation of optimistic trade talk combined with a weaker Real currency is giving beans a lift overnight.  Strong world oil prices add support under soybean prices.

 Wheat

  • Wheat export sales were 755tmt vs. estimates of 200-900tmt.
  • European markets have re-opened today.  Paris Milling Wheat futures gapped higher overnight and are at the highest price since last May.
  • A strong storm system is forecast to move across most of the middle U.S. the next 3 days, but the question remains whether the exact route will alleviate dryness in western wheat areas.

 Outlook: Concerns of declining world production and lower U.S. acres are driving strength in wheat prices.