Ami Heesch

Jan 13, 2021

Highlights

Today was a day to take some money for the pocketbook, especially after the decent strength shown in the markets the past several sessions. Wall Street moves higher in caution ahead of impeachment process of the current US president. Expectations are that 2021 will bring increased earnings and economic growth as the vaccine continues to rollout and more vaccines come online for distribution.

 

 

  • The energy markets were a mixed bag are currently mostly weaker with crude oil down 31 cents at $52.90/barrel.
  • US$ up 257 at 90.349, gold up 8-9 bucks at 1853/ounce and the CD$ up 0.0011 at 0.7873.
  • DJIA up 5 at 30982, S&P up 11 at 3807, NASDAQ up 61 at 13133.

                                                                                   

    Corn

    The corn market continues to move higher on tighter than expected stocks. New contract highs were met with a bout of profit taking.

  • Closes: March at $524 ¼, up 7 cents, July at $5.23 ½, up 7 ¼ cents, December at $4.51 ½, down 6 cents.
  • Gulf premiums were 1-2 cents weaker for January.
  • Argentine farmers end sales strike once their government dropped the daily corn export cap.
  • South Korea bought 66k tonnes of South America corn at $295.50/tonne C&F.
  • Weekly export sales estimates: 700 tmt-1.2 mmt.
  • Ethanol production was up 6k barrels per day with stocks seeing a slight increase to 23.7 million barrels.
  • Spreads: H/K 3 ¼ carry, K/N 3 ¾ inverse, Z/H 4 ¼ carry.

     

    Oilseeds

    The ginormous run in the soy complex was met with a bout of profit taking today. Losses were limited from extremely tight stocks for beans.   

     

  • Closes: March at $14.06 ¼, down 12 cents, July at $13.89, down 10 ½ cents, November at $11.75, down 1 ½ cents.
  • The products were weaker with meal down 8-9 bucks and oil down 45 points.
  • Gulf premiums were 3-4 cents firmer for January.
  • Weekly export sales estimates: 400 tmt-1.5 mmt for beans, 100-300 tmt for meal and 5-30 tmt for soyoil.
  • USDA announced the sale of 464k tonnes to Unknown (396k for 20/21 & 68k for 21/22).
  • More rain expected for Brazil while not so much for Argentina after this week.
  • The canola market traded lower in sympathy with the US soy complex and a stronger CD$.
  • Spreads: H/K 2 ¾ inverse, K/N 14 ¾ inverse, X/F 6 ¾ inverse.

     

    Wheat

    The wheat market finished mixed with Mpls and KC trading higher on hopes for increased demand because of increased tax implications of Russian wheat exports. Most all months across the three wheat markets made new contract highs prior to a bout of profit taking.  

     

  • March closes: Mpls at $6.27 ¼, up 6 ½ cents, KC at $6.23 ¼, up ¾ cent, Chicago at $6.59 ¼, down 5 ¾ cents.
  • Paris milling wheat values made new highs on Russian tax plans for Feb-Jun.
  • Egypt claims to have enough wheat reserves for up to five months.
  • Weekly export sales estimates: 250-550 tmt.
  • Spreads: Mpls H/K 8 ¼ carry, Kansas City H/K 3 ½ carry, Chicago H/K ¾ carry.