Dec 10 Morning Ag Commentary

by Michael Niemiec

USDA report day. Wheat prices overnight are down roughly 1 cent in the SRW Wheat, down 2 in HRW, and down 1 for HRS; Corn is down fractionally; Soybeans up 1; Soymeal down $0.50, and; Soyoil down 5 points.

Chinese Ag futures (May) settled up 39 yuan in Soybeans, up 2 in Corn, unchanged in Soymeal, down 14 in Soyoil, and up 14 in Palm Oil. The Malaysian Palm Oil market was down 2 ringgit at 2,900 (basis February) on weaker demand forecasts by private surveyors for the Dec 1-10 period versus a month ago.

The South American weather forecast for Brazil in the 6 to 10 day outlook has moderate rainfall in most areas with lighter amounts in the northeast.  The Argentine weather forecast remains dry in the 6 to 10 day forecast for the southern growing regions with light to moderate rainfall in the north.

In deliveries, Soymeal totaled 100 lots; Soyoil 622; Corn 62; HRW Wheat 3; Oats ZERO; SRW Wheat ZERO, and; HRS Wheat ZERO.

Preliminary Open Interest saw SRW Wheat futures up roughly 4,800 contracts; HRW Wheat up 3,300; Corn up 6,100; Soybeans up 9,700 contracts; Soymeal down 1,600 lots, and; Soyoil down 6,100.

The U.S. corn harvest was put at 92% complete (trade estimate 94%) versus 89% last week, 100% a year ago, and 100% average.

Yesterday’s U.S. weekly export inspections had

—Wheat exports running 18% ahead of a year ago with the USDA currently forecasting a 2% increase on the year

—Corn 57% behind a year ago with the USDA down 8% for the season

—Soybeans 22% ahead of a year ago with the USDA having a 2% increase forecasted on the year

Soaring hog prices continued to drive up China’s consumer inflation higher in November, but experts remained optimistic that the momentum would slow as the price of pork appears to be heading toward a peak in the coming months

Brazilian farmers had finished planting on 93% of the area estimated to be sown with the crop as of Nov. 5, according to agricultural consultancy AgRural; that was in line with the five-year average for the date and slightly behind the 96% completed last year; the crop is generally developing well, despite irregular rain in some areas.

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2019-12-10T14:54:47+00:00 December 10th, 2019|