Ami Heesch

Dec 1, 2020

Highlights

Pfizer and Moderna file for emergency approval in the EU and the US with delivery expected within a few hours after receiving approval. Another month bites the dust as we begin trading the last month of 2020. The US$ was weaker on renewed talk of a COVID-19 stimulus aid package.

 

  • Energy markets are mostly weaker with crude oil down 75 cents at 44.59/barrel.
  • US$ down 0.581 at 91.288, the gold market is up 38 bucks at 1815/ounce and the CD$ is up 0.00115 at 0.7727.
  • DJIA up 197 at 29836, S&P up 38 at 3662 and NASDAQ up 145 at 12344.
  • StatsCan updated Principal Field Crop production report is scheduled for December 3rd.
  • The next USDA S&D report is scheduled for December 10 at 11 AM CT.

     

    Corn

    The corn market traded lower on improving chances for beneficial rain events in SA and last of export news.

  • Closes: March at $4.20 ¼, down 5 ¾ cents, July at $4.24 ½, down 5 ¼ cents, Red Dec at $4.06 ½, down 1 ½ cents.
  • Gulf premiums were unchanged for December.
  • Brazil’s 20/21 corn crop estimated at 109.34 mmt (first crop estimated at 25.3 mmt). The second crop is expected to fair much better.
  • Spreads: H/K 3 ¼ carry, K/N ¾ carry, N/U 16 ¼ inverse, N/Z 18 inverse.

     

    Oilseeds

    The soybean market traded lower on favorable weather conditions in SA, and forecasts for additional rain events next week. Brazil’s 20/21 soybean crop is estimated at 133.9 mmt versus 133.4 mmt previously.  Argentine exports slowed because of a strike by the Argentine Oilseed Workers, resulting in export facility temporary shutdowns.

     

  • Closes: January at $11.63 ½, down 5 cents, March at $11.63 ¾, down 5 ¾ cents, July at $11.59 ½, down 5 ¼ cents, November at $10.38 ¼, down 3 ½ cents. The products were mixed with meal unchanged and oil down 42 points.
  • Gulf premiums were unchanged for December.
  • The canola market traded higher, despite weakness in the US soyoil market, on fund and exporter buying ahead of the StatsCan report on Thursday, as trade is expecting a slight reduction in production.
  • Spreads: F/H 1 carry, H/N 4 ¾ inverse.

     

    Wheat

    Continued losses for the wheat market on big Australian crop ideas (31.7 mmt and heading for 32.0 mmt), weakness in the row crops and deliveries in Chicago and Mpls. Prices drew additional pressure from improving winter wheat conditions.

     

  • March closes: Mpls at $5.48 ½, down 4 ½ cents, KC at $5.39 ½, down 7 ½ cents, Chicago at $5.78, down 7 cents.
  • Egypt bought 170k tonnes of Russian and Ukrainian wheat (110k Russian and 60k tonnes Ukrainian) for LH Jan/FH Feb shipment.
  • There were 93 re-deliveries against the December contract in Mpls, 100 new deliveries in Chicago.
  • Paris milling wheat prices were weaker on technical selling, despite strong demand and dwindling EU stocks.
  • Duluth stocks increased 1.3 mb last week to 19.6 mb. The Lakes program is expected to close by mid-December.
  • Spreads: Mpls H/K 8 ¼ carry, Kansas City H/K 6 carry, Chicago H/K 3 ¾ carry. Mpls Mar sits at a 10-cent premium to the KC Mar.