Early Market Talk

Early trade has CH19 up a ½ cent at $3.82 ¼ with SH19 2 ¼ higher at $9.02 ¼. Volume improving from yesterday but still leaning toward the lite side. KC and Chi wheat $0.05 higher.

Dow futures up 41 points this morning after another day of sharp losses. Fed rate increased a ¼ point yesterday as suspected.

Fed raises Interest rate to cool off or keep the economy from overheating? Because a stock market 14% off the high and crude oil 40% off its high isn’t doing enough???

CH19 within $0.01 ¼ of the $3.80 December monthly low set on the 4th and 6th. Price targets based on seasonal / average rally off that low in jeopardy of being recalculated? Corn market in need of some fuel for the tank.

Pacific ethanol laying off workers and slowing production at Aurora NE plant. Trade suspects USDA will lower further corn used for ethanol in their monthly supply / demand reports. A real possibility. But after a 50 mln bu reduction in the December report, they may hold off making further changes for a couple months?

Weekly export sales later this morning with trade expecting some big numbers.

BNSF freight values bid $350 offered $500 for JFM holding firm after trading in negative territory not that long ago.

Trade continues baffled by strength in SX19. Near universal agreement we need to lose bean acres next year but SX19 at $9.50 is not getting that done? Mdsr in NC IA reminded me it’s time to take another look at the CZSX spread currently near 2.36. Chart to follow.

Corn spreads continue to leak wider on flat price weakness. Open interest at 799K on the CH contract with the next closest CK at 220K. CZ19 a close third at 202K contracts.

Article Written by:

Bruce Nelson