Written Commentary
MORNING COMMENTS
Ag Fundamentals:
Tomorrow’s USDA WASDE report out at 11:00am CST should see little change to the US production numbers. Usage for corn on the ethanol front should increase by 25-50 million bushels and many believe export pace is enough to add an additional 75 million bushels to the demand side of the balance sheet. Beans are feeling the effects of swings in the bean oil market with nearby Jan beans above $10/bushel again. South American weather is wet for the next 7 days, but may turn slightly dryer in the last half of December. Biofuel policies are uncertain but have been a topic of conversation for both corn and bean usage. Minneapolis wheat saw a record net short in the fund position on Friday’s commitment of traders report.
Next 7 days of Precipitation in South America looks plentiful in most growing areas. Argentina is going to see more sunshine, but that is not necessarily bad for crops.
EXPORT & WORLD NEWS
The last flash sale of beans out of the US was to China on Thursday last week. Corn has not seen any flash sales since November 25th to Mexico. Export sales are still outpacing expectations and should see an adjustment in tomorrow’s report. Jordan issued an international tender to buy up to 120,000 MT of milling wheat in an international tender from optional origins.
Malaysian palm oil futures were down 8 ringgit overnight, at 5120.
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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