Early Market Talk December 30, 2020


Soybean daily volume streak of topping corn ended at 15. Corn volume topped 364K contracts compared to soy vol at 301 yesterday. Open interest up near 16K on corn and just a scratch over 2K for soybeans. A 40¢ bean rally and OI up just 2K gives pause.

Markets taking a breath overnight with CH21 giving up 2 ½¢ at $4.63 ½ and SF21 off 8 ¼¢ at $12.87 ¼. Corn and beans showing good volume with near 47K corn and 42K soybeans trading on the lead two contracts to this point. KC and Chi wheat each a couple lower.

Crude 46¢ higher at $48.46. Dow futures 84 points higher at 30,325. US $ Index lower and has traded within a whisker of its December 17th 89.64 low.

Tomorrow is first notice day on SF21 futures. Registrations stand at 100 lots and unchanged from a week ago. Delivery bean running near 3¢ premium to cash values.

Demand destruction looming in corn? Spot ethanol crush in the red and nearing a 20¢ loss. Forward curve in the red as well. Ethanol plants around the country largely running on 30 – 45-day corn inventory with little coverage beyond.

Soybean crush remains positive. Closer look at weekly calculation figures later this morning. While export sales have slowed in recent weeks, crush shows no signs of slowing. January report will be huge with production and qtrly stocks data.

Not forgotten about; CUCZ traded 8¢ inverse yesterday.

Today’s weather Headlines: Rains to improve moisture in west central Brazil. 31- 60-day outlook dry in central & southwestern US Plains states. January forecast drier in northeastern Argentina.

Markets close at 12:05 tomorrow

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