Morning Highlights


Highlights

  • President Trump is expected to sign the USMCA legislation today at the White House.
  • Coronavirus continues to remain in the headlines. In one month, the virus has now infected more people than SARS did in six months. Economists are debating what the economic impact of the virus could be.
  • Cash butter will have expanded trading limits of $0.10 cents per pound today.
  • Live cattle and lean hogs will resume their normal trading limits of $3.00 per cwt and feeder cattle will resume their normal trading limits of $4.50 per cwt today.
  • The biannual cattle report will be released at 2:00 PM Central on Friday, January 31st.
  • CHS Hedging will be hosting a Compass Class on March 25th at the Inver Grove Heights, MN office. For more information and to register, please click here.
  • Outside markets as of 7:00 AM Central: March crude oil at $53.72 up 0.24 per barrel; February gold is up $1.60 per troy ounce at $1,571.40; Dow futures up 112 at 28,822; US Dollar Index at 98.122 up 0.0104.

 Corn

  • Corn traded both sides overnight but continues to remain range bound. The market seems content to continue its sideways movement.
  • European traders reported that two South Korean entities purchased corn without issuing an international tender. The Major Feed mill Group bought 68,000 tonnes at $214.99 a tonne, and the Feed Leaders Committee purchased 65,000 tonnes at $216.74 a tonne.
  • Weekly ethanol production will be released at 10:00 AM today.
  • Spreads: H/K 5 ¼ cent carry; K/N 5 cent carry; N/U 2 cent inverse; U/Z 3 ¼ cent carry.

 Outlook:  3 to 4 lower to start

 Oilseeds

  • Soybeans traded higher overnight but are currently near the lower end of the trading range. Soyoil was higher overnight which lent strength to the market. Additional strength in soybeans stems from the market being oversold and due for a correction. The RSI for March soybeans is 22.6%, and anything under 30% can indicate oversold conditions.
  • Indonesia will impose an export tax of $18 per tonne on crude palm oil exports for the first time in almost three years.
  • Malaysian palm oil was up 148 ringgits on the April contract and settled at 2,723 ringgits.
  • Spreads: H/K 14 cent carry; K/N 13 ½ cent carry; N/Q 4 ¾ cent carry; Q/X 3 ¾ cent carry.

 Outlook: 1 to 2 higher to start the day

 Wheat

  • The wheat markets were lower across the board overnight and are currently at the low end of their trading ranges. March spring wheat broke below its 100-day moving average for the first time in over a month, which currently is at $5.39 ¼.
  • Jordan issued an international tender for 120,000 tonnes of milling wheat from optional origins. The deadline for the tender is February 4th.
  • Tunisia’s state grain agency has reportedly asked one of its suppliers to avoid French wheat, due to the ongoing strikes at French ports.
  • Spreads: Chicago H/K ½ cent carry; Kansas City H/K 7 ¼ cent carry; Minneapolis H/K 9 ¾ cent carry.

 Outlook: Weaker across the board