Corn and Soybean Morning Update & Commentary: Full day of trade on New Years Eve
<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 and Soybean Morning Update & Commentary:<br><br id=\"isPasted\">Overnight, the ag markets were mostly firmer, led by meal (+$4); corn finished 2-3 cents higher by the biscuit break, while soy gained 3-5 cents. Soy Oil was the laggard, finishing down 1%, ostensibly on broad veg oil weakness (Palm Oil and Rapeseed each off -1%). It is another relatively quiet news day; the trade features another mid-week holiday. Today is a full trading day, markets are closed Wednesday, and then re-open Thursday morning. Outside markets are mixed to start; the dollar is near unchanged, while both oil and stocks are a little firm. It is the final day of the quarter, month, and year, which will likely continue to drive somewhat unpredictable trade in the short-term. Recently, we think funds have been modest grain room buyers, as some of the profit-taking in ‘tech stocks’ finds its way into the commodity sector. We will see if they stick around? Meanwhile, farmers have been active sellers, which have given cash pipelines an early refill prior to the new year. South American weather remains a split feature; limited concern over drier Argentine weather into the new year, while Brazil crop potential remains fantastic. There were no 8 AM sales flashes today, and export news is lacking early. Today is First Notice Day for January soy complex futures; 1,116 meal, 425 oil, and 109 beans, were issued overnight.<br> <br>Futures revved higher Sunday night, but the day session was more mixed. The bean complex notched modest gains (soy up 2-4 cents, oil and meal up fractions of a percent), while corn retreated 1-2 cents lower after a strong week prior. Monday’s CFTC report confirmed funds are modestly long corn and short meal/soy; they did go from flattish oil to slightly short. Cash trade in both corn and soy had an easier lean, particularly in the former as farmers continue to sell corn futures rallies. Weekly grain inspections were a little light for both corn and soy, which should not surprise given the holidays. For the week ended 12/26, U.S. exporters shipped 878,380 metric tons of corn, which was down from 1.146 million metric tons (mmt) shipped the prior week, but still better than the year ago week’s 0.570 mmt. YTD corn inspections move to 15.36 mmt versus 11.95 last year. Soy inspections slowed to 1.569 mmt for the week, down from 1.774 mmt prior week, but vastly better than the prior year’s 0.970 mmt. China accounted for roughly one-half of the soy shipments. YTD soy inspections move to 28.6 mmt, which is an improvement on the prior year’s 23.3 mmt. <br> <br> <br>QT News - Top News<br> <br>-- Trade sources Tuesday reported Jordan's state grain buyer did not make any purchase at today's 120,000 mt feed Barley tender. The tender is expected to be rescheduled to next week.<br> <br>-- After recently being declared bird flu free, France's ag ministry on Tuesday announced two confirmed cases of bird flu on poultry farms in Normandy. The entire flocks were culled impacting over 25,000 birds.<br> <br>-- China's ag ministry recently approved 12 types of genetically modified corn, cotton, and soybean types, and also awarded approval for five types of gene edited crop varieties, including one corn, on wheat, two soybean and one rice variety.<br> <br> <br> <br>-- CME Group agricultural and interest rates markets will close at 12:15 p.m. CT on Thursday, January 9 in observance of former President Carter's funeral. All products trading on CME Globex will reopen at their regularly scheduled time on January 9 for a trade date of January 10.<br><br> <br>Pending Tenders<br> <br>NA<br> <br> <br> <br>-- Euronext Paris February rapeseed futures on Tuesday are trading -6.25 euros lower at 506.00 euros/mt<br> <br>-- Euronext Paris March corn futures on Tuesday are trading +1.00 euro higher at 208.75 euros/mt<br> <br>-- Dalian May corn futures on Tuesday traded -5 yuan lower ending at 2,230 yuan/mt<br> <br>-- Dalian May soybean futures on Tuesday traded +25 yuan higher ending at 3,939 yuan/mt; May soymeal rose +21 yuan finishing at 2,696 yuan/mt<br> <br>-- On Tuesday, Dalian May vegoil futures traded mixed, soyoil rose +14 yuan ending at 7,714 yuan/mt, palm oil lost -88 yuan ending at 8,676 yuan/mt<br> <br>-- Malaysian March crude palm oil futures on Tuesday traded -107 ringgit lower ending at 4,444 ringgit/mt<br> <br>-- On Tuesday, Malaysian March cash offers for RBD palm oil and olein traded -$15/mt lower ending at $1,105.00/mt and $1,110.00/mt, respectively<br> <br>-- CBOT Deliveries: January Soybean 109<br> <br>-- CBOT Deliveries: January Soybean Meal 1116<br> <br>-- CBOT Deliveries: January Soybean Oil 425</span></div><br><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">KJ</span></div>