Dec 6 Morning Ag Commentary

by Michael Niemiec,

Wheat prices overnight are down roughly 3 cents in the SRW Wheat, down 1 in HRW, and unchanged for HRS; Corn is down 1 cent; Soybeans down 4; Soymeal down $0.50, and; Soyoil down 15 points.

Chinese Ag futures (May) settled up 11 yuan in Soybeans, up 5 in Corn, up 24 in Soymeal, down 26 in Soyoil, and up 4 in Palm Oil. The Malaysian Palm Oil market was up 10 ringgit at 2,004 (basis February) on position-evening awaiting monthly trade data.

Brazil’s weather forecast has no major changes as close to average rainfall is still seen in the north, limited rainfall in the south with a front to bring fairly soaking rains to the south by the end of next week——Argentina’s weather forecast has no major changes as limited rainfall for now gives way to precip by the middle of next week.

In deliveries, Soymeal totaled ZERO lots; Soyoil 758; Corn 69; HRW Wheat 82 contracts; Oats 3; SRW Wheat 140, and; HRS Wheat ZERO contracts——-There were changes in registrations (SRW Wheat up 140 contracts; Oats up 2; Corn up 67; HRW Wheat down 34).

Preliminary Open Interest saw SRW Wheat futures down roughly 875 contracts; HRW Wheat up 3,300; Corn down 935; Soybeans down 1,700 contracts; Soymeal up 600 lots, and; Soyoil down 6,000 lots.

China on Thursday demanded Canada release a Huawei Technologies executive who was arrested in a case that adds to technology tensions with Washington and threatens to complicate trade talks; Huawei’s chief financial officer faces possible extradition to the United States; she is accused of trying to evade U.S. trade curbs on Iran.

Trade talk late afternoon had DDG prices up firmly as offers were being bought up across various U.S. rail markets.

China will ramp up imports of Argentine soyoil after Argentina begins harvesting its next soy crop in March, a government official said, but talks toward reaching a deal to sell soymeal livestock feed to China have fizzled

—the Chinese agreed to buy 300,000 to 400,000 tons of soyoil from Argentina; the deal was signed during President Xi Jinping’s state visit at the weekend; that compares to 120,000 tons of soyoil sent to China over the last three years and would be worth $185 million to $250 million per year, based on current prices.

—negotiations aimed at allowing soymeal livestock feed to be exported to China have gone cold, while China and the United States enter talks aimed at ending the trade war; they are not interested in buying soymeal from us right now, but we will keep talking.

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2018-12-06T13:40:52+00:00 December 6th, 2018|