Ami Heesch

Jan 11, 2021

Highlights

The day before! USDA is expected to release their final production numbers for 2020/21, Dec 1 grain stocks and 21/22 winter wheat seedings tomorrow at 11 AM CST. The US and world balance sheets will be updated as well. Fund positioning was noted throughout the grains during today’s session. Wall Street saw a bit of profit taking as investors take caution ahead of Friday’s earnings data. Facebook, Apple Inc and Google notes weakness on the suspension of President Trump’s social media accounts during the last few days of his term in office.

 

 

  • The energy markets are weaker with crude oil down 18 cents at$52.06/barrel.
  • The US$ is stronger, up 339 at 90.438, the gold market is up 12-13 bucks at $1,847/ounce and the CD$ down 0.00385 at 0.78295.
  • DJIA down 84 at 30909, S&P down 23 at 3794, NASDAQ down 128 at 13074.

                                                                                   

     

    Corn

    The corn market traded lower on a bout of positioning ahead of tomorrow’s USDA data and strength in the US$.

  • Closes:  March at $4.91 ½, down 4 ¾ cents, July at $4.90 ½, down 4 ¼ cents, December at $4.39 ½, down ¾ cent.
  • USDA announced the sale of 109k tonnes of corn to Columbia for the 20/21 marketing year.
  • Weekly export inspections were decent at 1.1 mmt, at the high end of the trade estimates.
  • The Argentine farmer looks to continue their strike on selling grain, despite the adjustment to the current export policy for corn shipments.
  • Spreads: H/K 1 ¾ carry, K/N 2 ¾ inverse, N/Z 50 ½ inverse.

     

    Oilseeds

    The soybean market traded lower on position squaring ahead of the USDA data release tomorrow morning. Prices drew additional pressure from strength in the US$ and weakness in the vegetable oil markets (Malaysia and Chinese palm oil and US soyoil). Losses were limited somewhat from strength in the soymeal pit.  

     

  • Closes: March at $13.71 ¼, down 1 ¼ cents, July at $13.56, down 2 cents and November at $11.54 ½, down 7 ½ cents.
  • The products were mixed with meal up 6-7 bucks and oil down 63 points.
  • USDA announced the sale of 132k tonnes of soybeans to China for the current marketing year.
  • Weekly export inspections were at 1.8 mmt, near the top end of what the trade was expecting to see.
  • The canola market tickled new contract highs, on a bout of fund short covering, from weakness in the Canadian Dollar, despite weakness in the soy oil complex.
  • Spreads: H/K 3 ½ inverse, K/N 12 ½ inverse. 

     

    Wheat

    The wheat market traded lower on a stronger US $ and a bout of profit taking prior to tomorrow’s USDA data. 

  • March closes: Mpls at $6.06 ¼, down 1 ½ cents, KC at $5.94 ¼, down ¾ cent and Chicago at $6.36, down 2 ¾ cents.
  • Weekly export inspections were disappointing at 279 tmt. Trade estimates were between 200-450 tmt.
  • Egypt’s GASC tenders for wheat this afternoon for LH Feb / FH Mar shipment.
  • Paris milling wheat traded sharply higher on talk of Russia possibly raising its wheat export tax from 25 euros to 50 euros come mid-February through June 30th.
  • Spreads: Mpls H/K 8 ½ carry, Kansas City H/K 4 ¼ carry, Chicago H/K 1 ½ carry.