Bryant Sanderson

Oct 14, 2021

Highlights

  • Equity markets are higher this morning as stocks tied to the economic recovery such as Carnival that is 2% higher this morning.
  • The equity market is likely to be volatile today as large banks continue to release their Q3 earnings reports. Bank of America released their earnings this morning showing earnings at 85 cents a share vs. 71 cents a share with revenue at $22.87 billion vs. $21.8 billion expected.
  • USDA export sales are set to be released tomorrow, a day later than normal due to Columbus Day this past Monday.
  • At 7:05 a.m. central time, Dow futures are up 285 points at 34,542, and S&P futures up 40 at 4,395, and WTI crude is up $0.95 at $81.39.
  • The U.S. $$ is down 0.210 at 93.870, gold up 3.0 at 1,797.7, and silver up 0.130 at 23.300. 

Corn

  • Futures are a couple cents higher this morning as the December’21 broke through the 200-day moving average of $5.1875 yesterday and remains below it this morning.
  • Corn harvest is mostly delayed for many as rains have come through with some falling this morning across Illinois. The extended outlooks though are dry and warm.
  • Open interest was up 3,040 with Dec 21 down 6,700, Mar 22 up 4,400 and July 22 up 2,500.
  • Spreads: Z/H 9’2 carry, Z/K at 15’0 carry, and Z/N at 17’0 carry. 

Outlook: Higher, correcting from yesterday’s lower action. 

Oilseeds      

  • Soybeans are three cents higher with soybean oil 4 higher and soymeal $1.6/ton higher.
  • NOPA is expected to be at 155.072 million bushels for September in tomorrow’s report, that would be a three-month low.
  • Malaysian palm oil futures for December were down 144 ringgits overnight, back down below the 5000-ringgit level.
  • There was 1 soybean meal delivery and 80 soybean oil deliveries.
  • Open interest was up 1,310 with Nov 21 down 12,300, Jan 22 up 9,100 and March 22 up 3,300.
  • Spreads: X/F at 10’2 carry, X/H at 20’0 carry, X/K at 29’4 carry, and X/N at 36’4 carry. 

Outlook: Higher, continuing yesterday’s recovery from the lows.   

Wheat

  • Higher across the board with the three classes four to five cents higher. EU Matif wheat is up 3.00 euro to 267.75 euro/tonne.  
  • Good rains have fallen across the winter wheat portions in the Southern Plains and Midwest in the middle of planting.
  • Minneapolis wheat is five cents higher this morning and is six cents away from the contract high of $9.60 on the December’21 contract.
  • Turkey has issued a tender to buy 300,000 tonnes of wheat from optional origins with the deadline for bids October 21 and shipment between December 10-31.
  • Spreads: Mpls Z/H 10’4 inverse, KC Z/H at 8’0 carry, and Chi Z/H at 12’6 carry. 

Outlook: Higher, correcting from yesterday’s drop.