Morning Highlights


Highlights

  • Outside markets as of 7:00am CT: Dollar down .582 at 91.316, Crude Oil down $.63 at $63.17, Dow up 95 at 25650 and Gold up $10.60 at $1333.10.
  • Markets will be closed Sunday night and Monday for Martin Luther King holiday.  Following a regular close at 1:20pm CT today, the grain markets will not re-open until Monday night, January 15th, at 7:00pm CT.  CHS Hedging will have an intern available on Monday for order placement from 8:00am to Noon and 4:00pm to 9:00pm CT at 800-328-6530.
  • Good rains are forecast for Argentina and southern Brazil this weekend, with large coverage.
  • At 11:00am CT this morning, NASS will release their Crop Production Annual Summary report, December 1st Quarterly Stocks report and the Winter Wheat Seedings report.  Click here for a Convenience Table for a more complete list of estimates.

Corn

  • The average guess for corn carryout is 2.431bbu; 12.431bbu for December stocks.
  •  Agroconsult estimated Brazil’s corn crop at 91.6mmt, down 2.8mmt from their November estimate.
  • BAGE estimated Argentina’s corn crop to be 85.8% planted, compared to 90.7% last year at this time.

Outlook:  Mixed trade ahead of the 11:00am report release.

Soybeans

  • The average guess for soybean carryout is 472mbu; 3.181bbu for December stocks.
  • Agroconsult estimated Brazil’s soybean crop at 114.1mmt, up 3.1mmt from their last estimate in November.
  • China imported 9.55mmt of soybeans in December, an increase of 6% from last year.  Total soybean imports for 2017 is estimated at 95.54mmt which would be almost 14% greater than 2016.
  • CME Group lowered its hedge margin for soybean futures by $150 to $1300/contract.
  •  USDA announced yesterday morning a sale of 132tmt soybeans to Unknown for 2017/2018.
  • There were 63 January soybean deliveries yesterday afternoon; 47 soymeal and 46 soyoil deliveries as well.  Today is the last trading day for January contracts of the soybean complex.

Outlook: Trade expecting a bearish report, but recent decline in prices has discounted some portion of that possibility.

Wheat

  • The average guess for wheat carryout is 959mbu; 1.849bbu for December stocks.
  • The average guess for winter wheat seedings is 31.307 million acres, which would be down 1.389 million acres from last year.
  • Argentina’s wheat crop is 98.5% harvested, according to BAGE.  Their production estimate remains 17mmt.
  • Russia exported 28.8mmt of wheat through November according to customs data, compared to 22.9mmt last year.

Outlook: As the other grains, today is all about the report at 11:00am CT.