Markets firm this morning adding to yesterday’s gains. Comments from trade officials and rumored Chinese purchases getting headlines. Continued weather worries in Brazil weather adding to the mix. At 0600 CH19 up $0.01 ¼ day $3.81 ½. SH19 up $0.06 at $9.13 ¾.
CH19 up $0.02 for the week so far and 11 cents off Tuesday’s low. SH19 only $0.02 ½ higher for the week and $0.12 off its weekly low also set Tuesday.
Dow futures up 164 points this morning at 24,484 and now over 3K off its December 26th low. Crude oil up $0.77 at $52.84.
Showers favored portions of central Brazil over the past day, but the heaviest rains continue to favor southern Brazil. Additional rains expected in central Brazil through the weekend, but hotter and drier weather returns next week allowing dryness to linger. Virtually no rainfall is expected in northeastern growing areas in Brazil.
Majority of trade leaning toward declining soybean production for Brazil given the above. Last USDA estimate at 122 mmt with majority of trade ideas in the 116 mmt area today and declining?
US Treasury Secretary quoted as having discussed lifting some or all tariffs on Chinese imports in a meeting later this month with Chinese officials. Getting some play as well as idea China did buy wheat yesterday.
Funds bought an estimated 25K corn yesterday and brings them back north of 100K long?? No CFTC data this afternoon as Gov’t shutdown continues. Suspect Funds are net even on soybean position.
SNSX hit 17 cents Tuesday and back into 12 ¼ this morning. Flat price has been and will continue to be the driver on this spread.
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