Markets Look to an Old Fashioned Open
Nov 23, 2018
Good Morning from Allendale, Inc. with the early morning commentary for November 23, 2018. We hope everyone had a great Thanksgiving and are ready for the holiday season (or will be soon). We're thankful for our readers and customers!
Grain Markets have an "old fashioned" open this morning at 8:30 AM CST. Weekly export sales and option expiration should be the main features of the day, but any new news on the US/Chinese trade rift will have an impact as well.
Weekly export sales will be released this morning at 7:30 AM CST. Analysts are expecting to see corn sales of 600,000 to 900,000 tonnes, soybeans 550,000 to 850,000, and wheat sales of 300,000 to 600,000 tonnes.
Other headlines around the newswires include:
China rejected fresh U.S. accusations of perpetuating "unfair" trade practices and urged Washington on Thursday to stop making provocations, showing little sign of backing down days ahead a high-stakes meeting between leaders from both countries. (Reuters)
Argentina's corn harvest was left steady at 43 million tonnes according to the Rosario Grains Exchange. Wheat harvest was reduced to 18.7 million tonnes for the 2018-19 season, from the 19 million tonnes previously estimated. Heavy rains likely damaged the crop the exchange said.
Brazil is having its best start of a grain crop in history and soybeans output could be as high as 129 million tonnes in 2018/19, depending on the weather and the adequate use of inputs, consultancy Agroconsult said on Thursday. (Reuters)
Egypt, one of the world's largest wheat purchasers, is likely to buy a cargo of U.S. wheat after Cargill made the lowest offer at its latest state purchasing tender at $221 a tonne free-on-board (FOB). (Reuters)
Funds on Wednesday were estimated buyers of 5,000 corn contracts, 3,000 soybeans, and 4,000 soyoil. They were thought to be sellers of 2,ooo wheat, and 2,000 soymeal. The weekly Commitments of Traders report from the CFTC will be delayed until Monday due to yesterday's Thanksgiving holiday.
A vessel is due to call at the northern French port of Dunkirk this week to load what would be the first cargo of French wheat for China in nearly five years, shipping data showed on Thursday. (Reuters)
The European Union's 27 national ambassadors will try to finalize an outline declaration of future ties between the bloc and the United Kingdom ahead of a planned summit on Sunday. (Reuters)
British Prime Minister Theresa May's Brexit deal is the "worst of all worlds," opposition Labour Party leader Jeremy Corbyn said in the House of Commons on Thursday. (CNBC)
Cattle on Feed was reported at 103.2% of last year, a bit below the average analyst estimate of 104.4. Placements were well below the 99.1 estimate at 93.9%, and Marketing's were reported at 104.8%, just above the 104.2 expected.
Cold Storage was reported at 570.6 million pounds for pork, and 515.4 million for beef. The pork number was a little under estimates, while the beef number was above.
Dressed Beef Values were lower with choice down 0.40 and select down .17. The CME Feeder Index is at 147.81. Pork cutout value was up 1.25.