Early Market Talk November 20, 2019

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Corn market witnessing a proverbial dead cat bounce yesterday? Giving up ground this morning on a dearth of fresh and positive news. Trump announcing Tariffs will go higher if no deal is struck with China.

At 0600 CZ19 trading 2¢ lower at $3.68 with SF20 2 ½¢ higher at $9.15 ¾. Both showing modest volume. Chi and KC wheat giving up some ground this morning.

Dow futures off 80 pts at 27,815 after new all-time highs reached yesterday. Crude 33¢ higher at $55.54. US $ Index showing modest strength.

First notice day on deliveries against the CZ19 a week from this Friday. As of last night, receipt registrations stood near 200 contracts. That figure can change quickly but as of today few deliveries expected.

Economics of corn delivery currently running at 12 cents over CIF values. 

Funds credited with buying 11K corn yesterday. Net short estimated at 141K contracts. Had them buying 1K soybeans and now net long 23K.

Rain moving into the central corn belt later today and slowing remaining harvest. Another shot of rain next week.

Modest corn hedge activity as harvest slugs along. CZ19 trading on average near 15 cents higher than the previous 4 years this date and when combined with historically strong basis finds cash bids running closer to 35 ¢ above previous 4 years.

Markets close regular times next Wednesday with no night trade Thursday. Open for trade again Friday the 29th at 0830…………………

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