Morning Highlights


Highlights

  • The Iranian struck back late yesterday firing 12 missiles at bases with U.S. personal. No casualties have been reported. The Iranian information the Iraqi’s prior to the strike. Initially U.S. equity futures dropped sharply and crude oil and gold saw shape gains. The dust has settled, and markets are seeing nominal changes.
  • President Trump tweeted “All is well” after the attack and plans to make a official statement this morning.
  • Gold futures broke the $1,600 per ounce level for the fist time in nearly 7 years overnight after last nights attacks on U.S. forces in Iraq. As of 6:34 am CT January gold futures are up $6.20 at $1,578.00 per ounce.
  • Export Sales will be released at 7:30 am CT tomorrow morning.
  • The government issues their monthly jobs report on Friday. Estimates are calling for companies to add 150,000 jobs in December. 

Corn

  • At the Dalian exchange overnight corn settled up 1/2¢.
  • CONAB will release their latest production estimates today. Their December number for corn was 98.4 MM. Trade anticipates a 1 MMT drop due to adverse weather.
  • The long-range South American forecast for February is calling for drier weather across southern Brazil. If realized it would stress late growth for corn. Seasonable showers are seen in the north.
  • As of the close yesterday, funds are estimated to be short 87,500 contracts futures and options combined.
  • Spreads: H/K 6 ¾ carry, H/N 13 carry, N/Z 1 ¾ carry. 

Outlook:  Slightly lower in slow trade.   

Oilseeds

  • Deliveries: Soybeans 248, Soymeal 574, and Soyoil 298 contracts.
  • CONAB will released their Brazilian soybean production estimates later this morning. Their December soybean production estimate came in at 121.1 MMT. The December USDA estimate was 123.0 MMT. The average guess from Friday’s USDA production report is 123.02 MMT with a range of 121.76-124.00 MMT.
  • Palm oil futures were down only 1 ringgit overnight at 3,041.
  • At the Dalian exchange overnight, soybeans rose 5¢, soyoil 37 points higher soymeal down $1.80.
  • Funds are estimated to be short 22,300 soybeans and 7,100 soymeal futures and options contracts combined. Managed money remains long 111,200 contracts of soyoil.
  • Spreads: H/K 12 ½ carry, H/N 24 ¾ carry, N/X 4 carry, X/F 3 ¾ carry. 

Outlook: Steady 

Wheat

  • Egypt's GASC seeks wheat for Feb. 18-29 shipment. Recent tensions in the Middle East have many concerned due to the region accounts for nearly 13% of wheat trade.
  • Funds are long an estimated 29,400 contracts.
  • Spreads: Mpls H/K 9 ¾ carry, Kansas City H/K 8 carry, Chicago H/K 3 carry. 

Outlook: Mixed with Chicago and KC slightly higher while Mpls is trading lower.