By ADM Investor Services Research Team
January soybeans traded just three cents higher on the day into the midsession but near five cents off of the highs. The small gain was disappointing given news from China officials that they will waive import tariffs on some soybeans and pork shipments from the US as both sides continue to work on reaching an agreement. Canola production in Canada is projected at just 18.6 million tonnes, down 8% from last year, according to Statistics Canada. This is 1 million tons less than the average trade estimate. Soybean oil is trading sharply higher on the day into the midsession while meal is trading $2.50 lower on the day after first rallying to the highest level since November 21st.
March corn traded 1 ¾ cents lower on the day with the low at 375 a new low for the week. The market did trade higher early and tested the 380 level as the soybean market was up sharply following news that China officials will waive import tariffs on some soybeans and pork shipments. While the stock market is sharply higher on the day, and energy prices are higher as well, strength in the US dollar may be seen as a limiting factor. The USDA announced a sale of 245,872 tons of US corn had been sold to Mexico.
March wheat traded four cents lower on the session into midday and down to the lowest level since November 25th despite strength in soybeans, favorable economic news and an upbeat trade situation to end the week. Ample world supply continues to pressure the market and traders see the strong US dollar today as a reason to suspect that US wheat will have trouble on the world export market. Stats Canada pegged Canadian wheat production at 32.3 million tons, up 0.5% from last year. This was slightly below trade expectations at 32.6 million tons.
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