Morning Markets: Corn: +1.75 old & +1.25 new.
Beans: +11.50 old & +7.25 new. Wheat: +5.50.
MARKET SUMMARY:
Good morning. Markets are higher this morning at mid-week in the ag space, as the pause seen Tuesday has quickly ceded to the resumption of the rally that took place to start the week on Monday. Corn futures are trading 1-2 cents higher, soybean futures are trading 7-10 cents higher, and the Chicago wheat market is trading 3-4 cents higher.
Crude Oil is up $0.31 at $56.82
US Dollar is down at $98.54
Global Equities: Japan +0.0%, China +0.0%, and Europe +0.0%
Dow futures are up 63 points at 49,784
EU MATIF Exchange: Corn +0.0% and Wheat +0.0%
WEATHER:
- Models this morning are in better agreement on the first of two low pressure systems expected to work through the Midwest this week beginning early in the day tomorrow, though still see noticeable differences on the path and timing of the second system that is expected to move through the area Saturday and into Sunday. Like we've said all week, the line between rain and snow through the central Midwest will be variable and hard to forecast, with the storm path being generally from western KS to central WI and the Great Lakes.
- Following some mostly light precip through the day on Tuesday, models see coming rainfall the rest of the week for Argentina generally north and west of the main growing regions, with this moisture then expected to keep expanding north and east into southern Brazil through the weekend and into the first part of next week. Nothing new on the temperature outlooks this morning, as the models still see Argentina generally staying cooler than average the next 10 days, while Brazil sees marginal warmth in the east but average to below average temps in the west.
OTHER HEADLINES:
- This morning's delivery slate according to the CME Group included 88 contracts of soybeans, along with 78 contracts of soybean oil and 10 contracts of rough rice.
- Today's weekly ethanol report from the EIA is expected to show average daily production in the US in the week ending January 2nd between 1.090-1.130 mil bbls, while stocks in the week are seen between 23.00-23.70 mil bbls. On average, production would be down just slightly from last week, while stocks would be higher.
- President Trump said on Tuesday that he had reached a deal with Venezuela's interim authorities on the transfer of 30-50 mil bbls of sanctioned oil to the US that will be sold at market prices. He said proceeds from the sales would benefit both countries and added that he's set to meet bosses from the oil industry sometime in the coming weeks to discuss rebuilding the industry.
- Other oil news this morning includes reports that India's state-owned oil refiners have continued to buy Russian oil despite US sanctions, signaling a shift in who is buying the oil rather than an overall collapse in demand as the Trump administration had hoped the sanctions would cause. Private refiners have cut back sharply on their imports of Russian oil, but Trump and other US officials have threatened to further raise India's tariffs if the purchases are not curbed.
- The USDA released monthly state-level crop progress figures for US winter wheat areas on Tuesday; the data showed declines in conditions generally across the western US wheat belt in places like KS, CO, NE, OK and TX, but showed an improvement in ratings across IL and other soft-red wheat areas. The final crop progress report released in November showed the total US winter wheat crop rated at 48% G/EX.
- Following peace talks in Paris this week, European leaders said on Tuesday that significant progress had been made on US security agreements for Ukraine should any peace deal be reached with Russia. Both France and the UK pledged troops for a "reassurance force", and the topic of a US-led ceasefire monitoring system was also discussed. The talks indicate that progress towards peace is ongoing, but there has been no indication from Moscow that it intends on agreeing to anything.
- Monthly export data from Brazil's Trade Ministry released on Tuesday showed the country's soybean exports in the month of December at 3.383 MMTs, which was up nearly 70% from the same month last year; corn exports at 6.128 MMTs were up 44%, while meal exports at 2.111 MMTs were up just 3%.
EXPORT NEWS:
- N/A
Be careful!
Bailey Runyen
Grain Originator | Topflight Grain Coop.
101 N. Main St. | Cisco, IL 61830
Phone :: 217-669-2141
Email :: brunyen@tfgrain.com
