Written Commentary
MORNING AG OUTLOOK
Grains are slightly higher. Stocks are higher. USD is higher. Higher US unemployment could suggest another rate cut. Crude is higher. US is blockading Venezuela oil tankers. US warns of new sanctions on Russia oil if Russia does not agree to a peace deal. Gold is higher. Bitcoin is lower. Trump will speak to nation tonight. 9 days until the end of the year.
SOYBEANS
SH is near 10.73. SH filled the gap from Oct 24. SH becoming oversold but funds could still be long 168,000 contracts with tech signals negative. There were no new US soybean sales announced. NOPA Nov soyoil stocks were 1,514 mil lbs vs 1,084 ly and a 7 month high. This plus no official policy from EPA weighed on soyoil futures. Argentina is dry but rains are forecast for next week but amounts have been reduced. Brazil could see good rains. Drop in India vegoil imports could also increase World vegoil supply especially palmoil.
CORN
CH is near 4.38. CH is near key price point. Holding support could trigger a bounce from oversold. Trade below could trigger increase fund selling. There were no new US corn sales announced. Dalian corn futures were lower and near 1 month low. Brazil plantings are near 77 pct and slightly ahead of ly. Brazil rains continue in central north but south is dry. Argentina is dry with showers next week but amounts have been reduced. Both US and Brazil farmers are reluctant sellers.
WHEAT
WH is near 5.19. 5.08 or contract low may be next price objective. WH is oversold. KWH is near 5.05. MWH is near 5.65. There was talk that China may have cancelled some US SRW sales. Export sales date shows China had bought 387 mt US wheat of which SRW was 125 mt. Some also feel some of unknown sales may be to China. Argentina futures were lower. Normal protein supply could be limited. Australia prices lower and testing Sep low. Matif futures made new contract low. There is little interest in Russia wheat. Ukraine suffering from electrical black outs.
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