Written Commentary
MORNING AG OUTLOOK
Grain calls are mixed to higher. Trading of futures and options on the Chicago Mercantile Exchange GLOBEX was down for several hours on Friday and yet to start.
December grain delivery data also delayed due to colling issue at CyrusOne data center. US stocks are higher. USD is higher. Crude is higher. Gold is higher. Market fallout continues in China after property giant Vanke proposed to delay paying a local bond. US snow in US northeast and in SD. Midwest US snow will be moving east.
SOYBEANS
SF is near 11.31. Higher calls on follow through from Wednesday. Open interest is in decline. 20 DMA is near 11.29. There is talk that China bought 12-14 US soybean cargoes which could be announced today. China is continues to lose 110 cents on US cargoes. Trade estimates US soybean exports near 600-2,000 mt and soymeal near 150-450 mt. Argentina and S Brazil hot and dry into weekend when rains and cooler temps return. General rains are forecast for most of Brazil. US administration seems to be leaning toward delay in intended cuts in imported biofuel.
CORN
CH is near 4.45. CH is above 20, 50 and 100 DMA. Higher calls on follow through from Wednesday. US cash basis is firming. Corn open interest is near season lows. Trade estimates US corn exports near 1,400-2,500 mt. US PNW best price for Asia buyers. US gulf needs to compete for N Africa and Middle East buyers vs lower Brazil. Trade fears US corn sales are front loaded and could soon slow. Corn, like soy complex lacks new fresh news. Dalian corn futures continue to trade higher due to debate on size of local crop. South America weather turning favorable for crops. There is talk China may have bought a few cargoes of US sorghum.
WHEAT
WH is near 5.40. KWH is near 5.30. MWH is near 5.78. WH is above 50 but below 20 and 100 DMA. US wheat export sales are estimated near 250-650 mt. MWH up on increase demand for higher protein wheat. Argentina and Russia are aggressive export sellers. Chicago and KC wheat futures consolidating near support lines. Chicago wheat open interest is near season low.
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