Early Market Talk December 2, 2019

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Wheat showing an impressive upside breakout Friday helping fuel corn rally. Recent history of corn rally through December deliveries also lending some phycological support as were strong export sales.

At 0600 corn able to hold Fridays gains with wheat giving back a couple cents. SF20 trading $0.02 ¼ higher at $8.79. Solid overnight volume all the way around.

No corn deliveries this morning. Meal deliveries Friday recirculating this morning with 260 lots put back out. Chi wheat showing a sharp upside breakout on the daily chart Friday and perhaps will spur additional Fund buying. Funds holding a long of 16K in Chi. KC wheat flirting with its downtrend line with Funds short 24K.

US soft wheat values running nearly a buck above world values fob to fob limiting fundamental excitement. China insisting a rollback on existing tariffs before a Phase 1 trade agreement can be signed. Holding off an increase to tariffs on December 15th not enough. This could prove problematic?

No extreme heat in the Brazilian forecast and expected 2 – 4” rains over the next 10 days keep crop prospects high. Argentina has some areas of developing dryness that are getting trade attention.

SF20 trading a new low for the recent move Friday and the lowest level since September 10th. Store / sell decision on soybeans over and movement as expected remains lite.

CFTC will update COT data later this afternoon for a new read on Fund positions……

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