Early Market Talk December 29, 2020


Soybean futures continue an unprecedented streak of 15 straight days with of daily contract volume topping corn. Preliminary soy volume for yesterday at 274K contracts with corn at 249K.

Soybean open interest off sharply yesterday (20K contracts) making it four straight days open interest has dropped. Typically, not a bullish signal heading into and making new contract highs.

Lot of Key Reversal talk in soybeans with them making a new high for the move and closer lower than the previous sessions low.

At 0600 this morning SF21 trading off 3 ¾¢ at $12.51 ½. Volume on all contracts near 35K so far. CH21 a scratch lower at $4.55 ¾. Corn volume near 25K on all contracts. KC and Chi wheat a couple cents better.

Dow futures up 139 points at 30,440. Crude 53¢ higher at $48.15. US $ Index off sharply at 89.96 and inching closer to the 89.64 low set the 17th. Brazilian real a scratch firmer against the US $.

As mentioned above, soybean open interest has dropped four straight and totals 58,598 contracts. Lower OI suggest short covering and not new long positions. Indicative of a market running out of gas. RSI just shy of 90 late last week hinting of the need for a price correction.

We show Funds net long 342K contracts after buying 20K yesterday. Have them net long 234K soybeans, 100K meal and 109K soybean oil contracts as well.

First notice day against SF21 is Thursday. SFSH clinging to a carry with SFSK and SFSN inverted.

Today’s weather Headlines: Winter storm on tap for Plains and Midwest. Light rain in Argentina mid-week; drier late week. Rains to remain active in South Africa next ten days

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