Written Commentary
MORNING OUTLOOK
Grains are lower. SF is down 9 cents and near 12.31. SMH is near 339.6. BOH is near 56.62. CH is down 7 cents and near 5.75. WH is down 12 cents and near 8.09. KWH is down 16 cents and near 8.40. MWZ is down 16 cents and near 10.29.
US stocks are sharply lower. Crude is lower. US Dollar is lower. Cocoa, sugar, cotton and copper are lower. Moderna CEO said vaccines may not work against new virus. US Fed Chairman said Covid offers downside risk to employment and economic recovery and increase uncertainty about inflation and need for higher wages.
Dalian soybean, palmoil and soyoil futures are lower. Corn and soymeal are higher. US south plains dry. US WW rated 44 pct G/E. SW Canada rains. E Australia rains.
Soybean market is seeing new selling on concern about slowing US soybean export demand and favorable South America weather. Brazil could see new crop Brazil soybeans for export in January. Brazil is also offering soymeal for export at a discount to US. Bulls need a South America weather problem forr prices to rally. Forecast looks for drier S Brazil and Argentina weather. Matif and Canada canloa futures are lower.
Corn futures are lower. Some feel Fridays rally was overdone due to option expiration. Trade is worried about larger Argentina and Ukraine supplies reducing US corn export demand. Strong domestic corn basis offers support. Some feel US domestic corn users remain short and need corn for use. EU raised corn stocks 3 mmt, removed 25 pct corn import tax.
Wheat futures are lower. Some feel the large increase in Australia estimate of the wheat crop may be weighing on wheat futures. Egypt bought 600 mt wheat at $376-379 vs 374 previous.
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