Friday Afternoon Comments (12/9) Corn rallied late in the session with CH gaining 6 cents and CZ17 up 5 ¼ cents. This week, CH gained 12 ¼ cents with CZ17 up 10 ¾ cents. The December U.S. S/D report held no changes from the November report save a 5 cent increase in the projected average farm price. World production numbers were not changed much with the only significant changes being a 3 MMT increase in Brazilian production and a 3.6 MMT increase in Chinese production. Outside market influences were mixed today with the Dollar firmer and crude oil half a dollar higher. Today’s trade erased all of yesterday’s losses as traders seemed to believe that yesterday’s negative reaction to the announcement of the next EPA head was overdone as production of biofuels looks to remain at lofty levels at least near term. Monday’s export inspections report is expected to include corn shipments of 40 to 45 million bu.
Soybeans, like corn, rallied after the 11 AM release of the December USDA crop report with SF finishing the day with a 10 ½ cent gain and SX rallying 12 cents. This week, SF added 10 cents and SX rallied a dime. The USDA report held no surprises as the U.S. balance sheet was unchanged from last month and South American production estimates were not changed. Beans were able to rally despite the negative influence of a stronger Dollar as the firm close was attributed to a rebound from what many thought was an overdone move to the downside yesterday. As has been the case each day this week, the USDA announced a large export sale this morning; 132,000 MT’s of 2016/17 soybeans to unknown destinations. A significant portion of this week’s export sales are expected to be shipped out of the PNW which is currently competitive with Brazil while the Gulf is a slight premium. Argentine weather still looks dry next week with rain chances coming back next weekend. Brazilian weather, which has been nearly ideal thus far this growing season, looks like it will continue to cooperate with weekend rains across southern crop regions and average temperatures and rainfall expected across the northern regions during the next 7 to 10 days. Some limited soybean harvesting is expected in Brazil by month’s end, but it will be later in January before significant amounts of soybeans are ready to be harvested.
Comments from Mid-Co Commodities
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Have a good & safe weekend!
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