Morning Highlights


Highlights

  • The U.S. will publish their final jobs report for 2019. The report will be released at 7:30 am CT. Analysts expected 160,000 jobs were added in December. If realized the U.S. has added 2.1 million jobs for the entire year.
  • After days of improving weather, Australia is bracing for fires to accelerate due to higher temperatures and increasing winds.
  • Weather patters in South America remain mostly favorable over the next couple of days. Scattered showers and up to ½” precipitation in the southern growing areas of Brazil. Argentina is forecast for .20-.60” of rain in northern growing areas through Sunday.
  • The EIA reported U.S. Natural gas prices in 2019 were the lowest in the past three years.Corn
  • For the week: March corn is down 3 ¼¢ and July corn down 2 ½¢.
  • Estimates for this morning’s export sales report are 350,000-700,000 MT.
  • BAGE reported Argentina corn planting at 88.2% complete, the 5-year average is 85.4%.
  • At the Dalian exchange overnight Chinese corn futures fell 2 ¼¢.
  • Funds are estimated to be short 87,500 contracts futures and options combined.
  • Spreads: H/K 6 ¾ carry, H/N 13 ¼ carry, N/Z 3 carry.

 

Outlook:  Futures are trading higher ahead of this morning’s reports.   

Oilseeds

  • For the week: March soybeans up 2¢, March soymeal .40¢ lower, March soyoil down 44 points.
  • Estimates for weekly export sales: soybeans 400,000-800,000 MT., soymeal 75,000-250,000 MT., and soyoil 0-250,000 MT.
  • Deliveries: Soybeans 141, Soymeal 292, and Soyoil 354 contracts.
  • Malaysian palm oil futures rose 24 ringgits overnight at 3,134. For the week, palm oil futures 18 ringgits.
  • China markets were mixed. Soybeans rallied 31¢ overnight and 78¢ for the week, soymeal down $3.30 overnight and 10.70 lower for the week, and soyoil rose 7 points overnight and 33 points for the week.
  • Funds are estimated to be short 9,100 soybeans and 30,400 soymeal futures and options contracts combined. Managed money remains long 108,200 contracts of soyoil.
  • The December NOPA crush will be released on January 15th. A record month is expected. November NOPA totaled 164.9 million bushels.
  • Spreads: H/K 13 carry, H/N 25 ¼ carry, N/X 3 carry, X/F 4 ½ carry. 

Outlook: Futures are up nearly 1¢ ahead of the long-awaited USDA reports. 

Wheat

  • For the week: March Chicago wheat up 7 ¾¢, March KC wheat up 15 ¼¢, and Mpls wheat 4 ½¢ higher.
  • BAGE reported Argentina wheat harvest at 95.5% complete, compared to 92.0% last week, they also increased the crop size from 18.5 MMT to 18.8 MMT.
  • Trade anticipates wheat export sales between 200,000-550,000 MT.
  • Funds are long an estimated 33,300 contracts.
  • Spreads: Mpls H/K 8 ½ carry, Kansas City H/K 7 ¼ carry, Chicago H/K 2 ¾. carry. 

Outlook: Prices are higher on ideas of Chinese buying and soft planted acres.