Afternoon Highlights 11.24.2021


Bryant Sanderson

Nov 24, 2021

Highlights

Equity markets were mixed with the Dow lower and the other indices modestly higher. Second quarter GDP growth was revised up from 2.1% to 2.2%, below expectations. 

  • Initial jobless claims totaled 199,000 for last week, the lowest it has been since November 1969.
  • US$ trading up 0.351 at 96.840, the gold market is up 1.5 bucks at 1785/ounce and crude oil is down 22 cents/barrel at $78.28.
  • DJIA trading down 48 at 35764, S&P up 4 at 4695, and the NASDAQ up 33 at 15808.
  • The grain markets are closed tomorrow for Thanksgiving and tomorrow night. There will be a hard open on Friday at 8:30am CT with an early close at 12:05pm CT.  
  • December options expire the day after Thanksgiving on November 26th

     

    Corn

    The corn market finished lower but had a back-and-forth day. The sold off in the morning after the wheat markets turned lower. Volume was large in front of Thanksgiving tomorrow and Friday’s shortened session. 

  • Closes: December down ¾ of a cent at $5.79 ¾, March down 2 ¾ cents at $5.85 ½, July down 3 cents at $5.90 ½, Red Dec down 1 ¼ cents at $5.58 ¼.
  • Ethanol production last week was 1.079 million barrels/day, up from 1.060 million barrels/day last week. Stocks rose to 847 million barrels from 843 million gallons the week prior.
  • CIF premiums were a penny higher for December and March.
  • There was a USDA export sale announcement to Mexico for 100 tmt.
  • Export sales out this Friday morning are expected to be 750-1.400 tmt for 2021/22 and 50-150 tmt for 2022/23.
  • Spreads: Z/H at 5 ¾ carry, Z/N at 10 ½ carry, H/K at 4 ¼ carry and N/Z at 32 ½ inverse. 

    Oilseeds

    Soybeans were lower feeling the pressure from soybean meal continue to weaken. Soybean oil continued to stay firm with it trading higher every day this week.  

  • Closes: January down 6 ½ cents at $12.66 ½, March down 7 ¼ cents at $12.77 ¼, July down 7 cents at $12.92 ¼, November down 3 ¾ cents at $12.49 ¾.
  • There was a USDA export sale announcement of 330,000 metric tonnes of soybeans to unknown destinations. Also, there was 30,000 metric tons of soybean oil announced to India.
  • CIF premiums were strong with the first half December up 6 cents, last half December up 5 cents and first half January up 2 cents.
  • Soybean export sales are expected to be 900-1.800 tmt this Friday morning. Soybean meal exports are expected to be 100-350 tmt and soyoil exports to be 5-50 tmt.
  • Spreads: F/H at 10 ½ carry, F/N at 25 ¾ carry, H/K at 9 ½ carry, N/X at 42 ¾ inverse. 

     

    Wheat

    The wheat market had a very volatile day with managed money appearing to control today’s price action with the Chicago market down 19 ¼ cents on the December’21 contract. The Kansas City market finished around 5 cents lower, and the Minneapolis market had a quiet finish down a penny. Both Chicago and Kansas City wheat made new contract highs. 

  • December closes: Mpls down 1 ½ cents at $10.36 ¾, KC down 5 ½ cents at $8.73 ¼, Chicago down 19 ¼ cents at $8.36 ¾. The September Mpls contract made another new life of contract high to $9.49 ¼ today and settled at $9.44 ¼.
  • Paris wheat values were mixed with the nearby December down 5.25 euor/tonne but not before it made a new all-time high.  
  • Export sales out this Friday are expected to show sales between 250-550 tmt.
  • Spreads: Mpls H/Z 7 ¾ carry, Kansas City Z/H at 3 ¼ carry, Chicago Z/H 13 ½ carry.