Morning Highlights


Highlights

  • The energy markets are mostly higher with crude oil up 2.29 at $63.47 from increased tensions in Iran.
  • The US$ is up 163 at 97.01, the gold market is up 20 bucks at $1,548/ounce and the CD$ is down a hair at 0.7697.
  • DJIA is down 280 at 25861, S&P is down 36 at 3223 and the NASDAQ is down 122 at 8679.
  • Federal Reserve meeting minutes are expected to be released this afternoon.
  • Weekly export sales report out this morning at 730 CST.
  • The Commitment of Traders report will be delayed until Monday afternoon.
  • The USDA final production, S&D, Dec 1 Grain Stocks and first assessment of winter wheat seedings is scheduled for next Friday, January 10th at 11 AM CST. 

Corn

  • Corn prices turned lower on spillover weakness in the soybeans and wheat market.
  • Weekly export sales estimates are at 300-775 tmt.
  • Rangebound trade is expected to continue ahead of the Jan 10 USDA data and the Jan 15 signing of the US/China trade agreement.
  • Broiler egg sets are stronger, showing a 4% increase over last year at this time.
  • India tendered for 50k tonnes of optional origin corn for Jan shipment.
  • China’s corn market was 1 cent firmer overnight.
  • Spreads: H/K 6 ¼ carry, H/N 12 carry, N/Z 2 carry 

Outlook:  Rangebound between $3.85-$3.95 on lack of fresh supportive news 

Oilseeds

  • Soybean prices turned lower overnight and appear to be taking a breather from recent strength over the past several sessions.
  • Deliveries: 275 beans, 1,503 meal and 359 oil.
  • Weekly export sales estimates: 350 tmt-1.0 mmt for beans, 75-250 tmt for meal and 5-30 tmt for soyoil.
  • Malaysian palm oil closed 14 lower at 3,116 ringgit.
  • China bean markets: beans up 5 cents, meal down 1-2 bucks and oil up 29 points.
  • SA looks to see a more favorable weather pattern over the weekend and next week.
  • Spreads: H/K 13 ½ carry, H/N 25 ¼ carry, N/X 1 ½ carry, X/F 3 carry. 

Outlook: lower trade on beneficial weather for SA and lack of fresh supportive news  

Wheat

  • Wheat prices saw a bit of a technical setback after past several sessions of firmer prices.
  • Losses should continue to be limited ahead of the Jan 10 USDA report and the signing of the US/China trade agreement on the 15th.
  • Weekly export sales estimates range from 250-800 tmt, although with the shortened week last week ideas are that they will be near the low end of the estimates.
  • Crop/weather concerns in the Black Sea region, EU and Australia is also expected to provide support to the wheat market.
  • The EU expected crop losses come from significant reductions in wheat seedings because of excessive rains during their planting season.
  • Morocco tenders for 354k tonnes of durum for May shipment.
  • Spreads: Mpls H/K 10 carry (consider rolling some short hedges to the May at a dime), Kansas City H/K 8 ¼ carry, Chicago H/K 3 carry. Mpls March sits at a 76 ½ cent premium over KC March. Chicago March sits at a 76-cent premium over KC March also. 

Outlook: Lower trade on ideas the wheat market has run out of gas for the moment