Corn And Beans Higher Overnight

MORNING OUTLOOK

Corn and soybeans are higher overnight, while wheat prices are mixed.  Corn is up $.02 – $.03 rebounding from 5 consecutive lower closes.  Soybeans are up $.13 – $.15 on optimism of relaxed Covid restrictions in China, soybean meal up $3 – $5, and soybean oil is 40 – 60 higher.  Chicago wheat is steady to up $.01, KC and MGEX wheat  are steady down $.01.  The US $$$ and spot crude oil are down.  US stock indices are steady.  Metals and softs are all higher.

Ag Farm Fields

The average ending stock estimates for Friday’s USDA WASDE report are corn 1.238 bil., up 56 mil. from 1.182 bil. in Nov.  Range 1.170 – 1.350 bil.  Soybeans 233 mil., up 13 mil. from 220 mil. in Nov.  Range 200 – 296 mil.  Wheat 581 mil. up 10 mil. from 571 in Nov.  Range 551 – 602.  Not much change expected for global stocks.  Ave. estimate for Argentine corn is 53.8 mmt down from 55 mmt, while soybeans expected to slip to 48.8 mmt, down from 49.5 in Nov.  Brazil corn expected up .3 mmt to 53.3 mmt while soybeans up .5 mmt to 152.5 mmt.

Chinese imports of Brazilian corn are gaining steam with 4 vessels having already left for the Asian country carrying 280k tons.  5 more are expected to leave soon with cumulative volume expected to reach 1 mmt for the year.  Brazil’s soybean plantings have reached 91%, vs. 94% YA.  First corn crop plantings at 93% vs. 94% YA.  Ukraine corn exports via the Black Sea did pick up last week as just over 838k tons of corn were shipped, up 39% from the 601k the previous week.  The back log of ships awaiting inspection in Turkey slipped to 91, down from 98 the previous week.

Growing conditions across central Northern Brazil remain near ideal, a bit drier than desired in South RGDS. Argentine weather still hot/dry and forecasts for moisture seemingly continue to get pushed back.  If that pattern doesn’t change soon production forecast will begin falling more aggressively.

Learn more about Mark Soderberg here

 

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

ADM & Industry News

Explore the latest edition of The Ghost in the Machine

Explore Now