Ami Heesch

Jan 15, 2021

Highlights

The grain markets opened higher on continued digestion of this week’s USDA data. Prices turned weaker midday on a bout of profit taking ahead of the long holiday weekend. The soy complex was weaker on a disappoint crush number for December and weakness in crude oil.

 

  • The Ag markets will be closed Sunday evening and Monday. Trade will resume Monday evening at 7 PM Chicago Time. The energy markets will be trading on Monday and CHS Hedging will have someone on the phones to (place orders) from 8 AM-Noon and again from 4-9PM.
  • Energy markets falter, with crude oil down 1.44 at 52.13/barrel.
  • US$ up 527 at 90.766, gold down 25 bucks at 1826/ounce, and CD$ down 0.0063 at 0.78525.
  • DJIA down 190 at 30716, S&P down 30 at 3760 and NASDAQ down 86 at 13026.
  • NOPA crush for December was reported at 183.19 million bushels. This compares to trade estimates at 185.175 million bushels. Oil stocks came in at 1.699 billion pounds and meal exports were reported at 1.037.303 tons.

                                                                                

    Corn

    Corn prices were pressured from a bout of pre-weekend profit taking after recent strength.  Additional pressure came from the sharp weakness in the soy complex.

  • Closes: March at $5.30 ¾, down 3 ½ cents, July at $5.30 ¾, down 4 cents, December at $4.58 ¾, up 1 cent.
  • CIF premiums were unchanged to 1 cent firmer for January.
  • USDA announced the sale of 110k tonnes of corn to Mexico for the current marketing year.
  • Spreads: H/K 3 carry, K/N 2 ½ inverse, N/U 47 ¾ inverse, Z/H 5 ½ carry.

     

    Oilseeds

    The soybean market traded lower on a bout of fund selling ahead of the long weekend. Prices drew additional pressure from the sharp drop in the soyoil market and a lower December crush number than expected.   

     

  • Closes: March at $14.14 ¾, down 15 ¾ cents, July at $13.98 ½, down 14 ¾ cents, November at $11.96, down ½ cent. The products were weaker with meal down 2-3 bucks at oil down 122 points.
  • Soyoil saw pressure from weakness in the crude oil market.
  • CIF premiums were 3-4 cents weaker for January.
  • USDA announced the sale of 318k tonnes of beans to Unknown for the 21/22 marketing year.
  • Beneficial moisture is forecast for Brazil and Argentina this weekend. Some forecast suggest mor dryness for Argentina next week and continued moisture for Brazil.
  • The canola market was lower on spillover weakness in other related oil markets. Losses were limited from decent demand form exporters and crushers. Most months closed 4-7 bucks off their lows made during the session.
  • Spreads: H/K 1 ¾ inverse, K/N 14 inverse, N/Q 47 inverse, Q/X 155 ¼ inverse, X/F 6 inverse.

     

    Wheat

    The wheat market opened stronger on Russia tax talk and tightening US and world stocks. Prices set back from their highs on weakness in the row crops.  Prices were kind of drifting about ahead of the long weekend.

     

  • March closes: Mpls at $6.40 ¼, down ¼ cent, KC at $6.44 ¼, up 7 ¾ cents, Chicago at $6.74 ¾, up 4 ¾ cents.
  • Russian officials proposes a 50-Euro tax hike to begin March 1 and extend it into the new marketing year.
  • EU wheat prices traded higher on Russian tax implications, which could tighten global supplies of wheat.
  • Spreads: Mpls H/K 8 ¾ carry, Kansas City H/K 2 ¾ carry, Chicago H/K ¾ carry.