Dec 1 Morning Ag Commentary

by Michael Niemiec,

Wheat prices overnight are up roughly 2 cents in the SRW, up 3 in HRW, and up 5 for Spring; Corn is up 1 cent; Soybeans up 4; Soymeal up $1.00, and; Soyoil up 15 points.

For the week, Winter Wheat prices are near unchanged for SRW, up 1 in the HRW, and down 11 for HRS; Corn is up 2 cents; Soybeans down 3; Soymeal up $1.00, and; Soyoil down 10 points (March crushing margins are up 6 cents around 1.02).

Chinese Ag futures (May) settled down 26 yuan in Soybeans, down 8 for Corn, down 23 in Soymeal, up 4 in Soyoil, and up 20 in Palm Oil. The Malaysian Palm Oil market was closed for holiday.

The South American weather forecast has rainfall seen for the western and southern Argentine growing regions over the next 3 days but, still limited rainfall in the main sections of the growing areas; light and scattered rains are seen for Argentina next week——-things look quiet in southern Brazil until rains are seen moving in Sunday-Monday; things then look to be fairly quiet in southern Brazil the rest of next week——-average to above average rainfall is seen for northern Brazil over the next 10 days—–temps still look to run below average in South America for the next 10 days with no cold air threats seen.

In deliveries, Soymeal totaled 59 lots; Soyoil 279; Corn 1,286 (issued by Term); HRW Wheat 556 (issued by Gavilon); Oats 15; SRW Wheat 1,520, and; HRS Wheat 398 (issued by Term).

The player sheet had funds net buyers of 1,000 contracts of SRW Wheat; net bought 9,000 Corn; were net sold 6,000 contracts of Soybeans; net bought 3,000 lots of Soymeal, and; net sold 3,000 Soyoil——–We estimate Managed Money net short 114,000 contracts of SRW Wheat; net short 212,000 Corn; net long 19,000 contracts of Soybeans; net long 27,000 lots of Soymeal, and; net long 34,000 lots of Soyoil.

Preliminary Open Interest saw SRW Wheat Futures down roughly 10,400 contracts; HRW Wheat up 580; Corn down 3,600; Soybeans up 8,600 contracts; Soymeal down 300 lots, and; Soyoil up 7,300 lots.

The U.S. Department of Agriculture’s monthly report on oilseed crushings today at 2 p.m. will likely show that about 5.242 million short tons, or 174.7 million bushels, of soybeans were processed in October (estimates ranged from 171.0 million to 175.8 million bushels)—-the U.S. September soy crush totaled 4.361 million tons, or 145.4 million bushels

—–U.S. soyoil stocks at the end of October were seen at 1.650 billion pounds (estimates ranged from 1.625 billion to 1.690 billion lbs); the USDA reported end-September soyoil stocks at 1.711 billion lbs.

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2017-12-01T13:59:58+00:00 December 1st, 2017|