Written Commentary
CLOSING COMMENTS
Ag Fundamentals:
Grain markets are lacking new news, all open higher following the Christmas holiday splitting the week. China’s hog herd has been declining recently due to weak margins and lower pork demand. It is still unclear how many beans Sino (China) bought from the US in the last couple weeks (between 500K MT and 1.2M MT), but expecting it to become clear on tomorrow’s export sales report. Brazil’s weather has offered plenty of rain for a solid start to their growing season. The will continue to get scattered showers in most growing areas over the next 10 days. Argentina has some concerns they will experience less than normal rainfall in the next 10-15 days. Russia’s final wheat estimates are in at 82.4 million MT, 900K MT more than the previous USDA estimate. Algeria has bought 630K MT of wheat for February/March delivery, most likely originating from eastern Europe and Ukraine. The USDA WASDE report on January 10th will be the next talking point following the holidays.
Export & World News
Algeria purchased 630K MT of wheat for February/March delivery. Most likely this wheat purchase originated from eastern Europe or Ukraine.
Calendar Spreads
Cost of Carry
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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