Corn Morning Update & Commentary: Firmer Dollar offers an early headwind to overnight rally
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><div style=\"line-height: 1;\"><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">Corn Morning Update & Commentary:<br><br id=\"isPasted\">Overnight, the corn market maintained slightly firmer trade, finishing steady to two cents higher by the morning pause. There are some early headwinds around to start the day, chiefly a bounce in the US Dollar, which is helping to promote a slightly easier start for both energy and equities. Early strength can likely be attributed to the afterglow of the positive conclusion to last week, which we think was nudged along by modest consumptive buying from world importers following a post-WASDE market dip. To that point, there was another 132,000 metric tons of U.S. corn booked to ‘unknown’ buyers at 8 AM, which would be the third consecutive day with a flash. After the close, the market also received another dose of good export news; the USMCA dispute panel found in favor of the U.S. regarding Mexico’s restrictions on GMO corn imports. The positive resolution was broadly expected but does remove a modest background worry surrounding U.S. corn’s #1 export customer. Mexico has implied they will comply with the ruling but move forward with a measure banning GMO planting there? U.S. Congress passed a funding resolution early in the weekend, so we should get a Quarterly Hogs and Pigs report this afternoon. Note this will be an abbreviated trading week; shortened hours tomorrow (Tues) and closed Wed for Christmas.<br> <br>Corn futures kept the rally fires burning Friday; the market was firm nearly start to finish, settling 3-5 cents higher. The weekly corn chart will report a gain of 16 cents, as the March Corn contract ‘earned its carry’ following Dec expiration last week. Cash trade was steady/mixed today at levels that are slightly below recent highs. CFTC Disaggregated Commitment of Traders report after the close did not offer major surprises for corn. Managed Money were small net sellers for the week ended 12/17 (Tues); Commercial traders and smaller non-reportable traders were also net sellers, likely reflecting hedging of farm-sold bushels. “Other participants” were the offsetting buyers. When including recent activity, we think funds are net long roughly 165,000 delta-adjusted corn, which is nearly a two year high. The Cattle on Feed report was deemed neutral to slightly bearish cattle and slightly friendly to feed consumption. ‘On feed’ inventory was in-line with expected at 100% of year earlier, but both placements (at 96%) and marketings (at 99%) were slightly above trade estimates. Weather worries remain relatively muted; Argentina turns a little drier into month’s end, but it is not expected to be accompanied by excessive heat, which should help preserve soil moisture to some extent until better monsoon rains arrive.<br> <br> <br>QT News - Top News<br> <br>**USDA reported private sale of 132,000 metric tons of corn for delivery to unknown destinations during the 2024/2025 marketing year.<br> <br> <br> <br>-- Mexico's President said she expect the country's legislature early next year to vote on a measure to ban the planting of GMO Corn in the country.<br> <br>-- US Trade Rep office on Friday afternoon said the USMCA dispute panel has ruled in favor of the United States regarding Mexico's restrictions on genetically modified organism Corn, the panel finds Mexico violated the sanitary & phytosanitary provisions of the USMCA trade pact<br> <br>-- USMCA dispute panel recommends Mexico change its anti GMO corn claims to conform with the trade pacts sanitary and phytosanitary measures and market access<br> <br>-- Ahead of today's quarterly USDA hogs and pigs report, analysts are forecasting as of December 1st, all hogs at 100% of the year ago figure. Hogs kept for breeding are expected at 100% of the year ago level, and kept for marketing at 100% of the year ago level. The data will be released at 2:00 PM CT, Monday, Dec 23rd.<br> <br>-- USDA monthly Cold Storage data will be released Monday afternoon around 2:00 PM CT<br> <br>-- Friday's USDA Cattle On Feed December 1: 100%; estimate 100%; prior month 100%<br> <br>-- Friday's USDA Cattle Placements during November: 96%; estimate 95%; prior month 105%<br> <br>-- Friday's USDA Cattle Marketings during November: 99%; estimate 98%; prior month 105%<br> <br> <br> <br>Pending Tenders<br> <br>-- Pending Tender: Jordan's state grain buyer on Thursday (12/19) set December 24th as the offer deadline in a tender seeking up to 120,000 mt of feed grade Barley. The grain is for shipment from LH Feb to FH April<br> <br> <br> <br>-- Euronext Paris March corn futures on Monday are trading +0.25 euro higher at 205.25 euros/mt<br> <br>-- Dalian May corn futures on Monday traded +9 yuan higher ending at 2,186 yuan/mt</span></div><br><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">KJ</span></div>