Written Commentary
MORNING AG OUTLOOK
Grains are mixed. SH is down 3 cents and near 12.64. SMH is near 372.0. BOH is near 48.40. CH is unch and near 4.66. WH is up 3 cents and near 6.16. KWH is up 5 cents and near 6.31. MWH is up 9 cents and near 7.20. US Dollar is higher. US stocks are lower. Crude is higher on increase Middle East tension. World food prices fell in December, as lower prices for sugar, vegetable oils and meat offset increases in dairy products and cereals, FAO of the UN said on Friday.
CH is near 4.66. Weekly US ethanol production is up 24 pct vs ly. Stocks are on rise but still 3 pct below ly. Margins continue to be lower. Trade will watch CONAB and USDA est of Brazil corn crop. Most est are below 120 mmt vs USDA 129. Weekly US export sales are est at 500-1,200 mt vs 1,242 last week.
SH is near 12.64. Global crush is forecasted to increase which is negative soymeal. Trade is worried that China may be done buying US soybeans for now. US export sales are est near 500-1,300 mt vs 984 last week. Funds are small soybean short. Trade will watch CONAB and USDA est of Brazil crop. 160 mmt is negative, 155 neutral and 150 positive. Dalian soybean and soymeal were lower. Palmoil and soyoil higher.
WH is near 6.16. US export sales are est at 150-450 mt vs 276 last week. Managed funds covered some of their short wheat futures. There are rumors China may again be interested in US wheat. US, EU, Baltic, Russia and Ukraine temps will turn colder.
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