Ami Heesch

Nov 20, 2020

Please take time to check on your open deck for Dec orders that can be canceled (futures). Things can get a bit crazy during holiday / shortened trading weeks.

 

Highlights

No deal in sight for COVID-19 aid package. CoronaVirus said to be moving around the world like wildfire, creating the need to impose closures on bars, restaurants, fitness centers etc. in hopes to get things back under control until there is an adequate supply of successful vaccines available.

 

  • The energy markets were stronger with crude oil us 43 cents at $42.15/barrel.
  • US$ traded higher, up 103 at 92.397, Gold up 8 bucks at 1869/ounce, CD$ down a freckle at 0.7638.
  • DJIA down 219 at 29263, S&P down 28 at 3554, NASDAQ down 49 at 11855.
  • First Notice Day for Dec futures is Nov 30 with longs reported at the end of next week.
  • Short trading week next week with the Thanksgiving Day Holiday. No markets Wednesday evening, or Thursday. Trad resumes at 0830 hours on Friday November 27.

     

    Corn

    The corn market traded higher on improving demand and South American crop worries from extended periods of dryness. Better chances for rain in SA are forecast in the extended maps. The market awaits additional Chinese corn purchases.

  • Closes: December at $4.23 ¼, up ¾ cent, March at $4.28 ¼, up 1 cent, July at $4.30 ¾, up ¾ cent and Red Dec at $4.08 ¼, up ½ cent.
  • The USDA announced the sale of 131k tonnes of corn to Unknown and 158k tonnes of corn to Mexico for the current marketing year.
  • Spreads: Z/H 5 ½ carry, H/K 2 ¼ carry.

     

    Oilseeds

    The soybean market opened higher and was trading 15-20 cents higher early in the morning. Soyoil prices began to wane and soybeans set back from their highs made earlier. Soymeal held unto its momentum, with the deferred months making new contract highs and closing on a high note. Soyoil finished the day in negative territory.

     

  • Closes: January at $11.81, up 3 ½ cents, March at $11.81 ¼, up 5 ¾ cents, July at $11.73 ¾, up 6 cents, November at $10.49 ½, down 1 ½ cents. The products were mixed with meal up 20 cents and oil down 17 points.
  • Market will be watching the weather maps for Brazil and Argentina as the weeks go on. This week was thought to be beneficial for the crops as showers popped up across the country throughout the week.
  • The canola market traded near 7-yer highs on strong export and crusher demand for canola. Crush margins are thought to be Dynomite! And are said to be less expensive than other related oil markets.
  • Spreads: F/H 2 inverse, H/N 7 inverse.

     

    Wheat

    Wheat prices opened higher on renewed buying interest. Prices drew pressure from midday weakness in the soybean and oil market. Big crop ideas out of Australia provided additional pressure on the wheat market.     

     

  • December closes: Mpls at $5.51 ½, up 5 ¼ cents, KC at $5.50 ¼, up 1 ½ cents, Chicago at $5.93 ¼, up 1 ½ cents.
  • Australia’s wheat crop is estimated between 32-34 mmt.
  • Rains for the US Plains are moved back to Sunday evening and into early next week.
  • Spreads: Mpls Z/H 17 carry, Kansas City Z/H 8 ¾ carry, Chicago Z/H 6 carry.