Early Market Talk November 29, 2019

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No corn deliveries overnight and not a big surprise. Should lend some price support on the open. Meal and oil deliveries at 319 and 226 lots respectively. No Chi wheat put out and only 11 contracts of KC.

Markets expected to open firm at 8:30 after sharp losses in corn Wednesday. No corn deliveries also lend some support.

Dow futures trading 54 pts lower this morning at 28,094. Crude 5¢ lower at $58.06.

China warned the United States it would take “firm counter measures” in response to U.S. legislation backing anti-government protesters in Hong Kong. Can’t be good for trade talks?

Funds credited with selling 15K contracts Wednesday and now estimated short a net 167K. Sold 7K soybeans and estimated net short 28K. Fund short in corn could provide some short covering fuel without any meaningful price driver.

Trend in corn remains lower. Market needs to close above $3.75 area in the coming days to reverse.

Heavy rains fell in central and northern Brazil over the past 48 hours, with 0.5 -2.0” amounts for most and rains up to 4.0” locally; forecasts are looking drier for BRZ as whole for the next ten days, with above-normal rains returning for the 11-15-day period. Argentine rains will be scattered and light through mid-December, though our lead forecaster doesn't see serious dryness issues ahead

Weekly export sales at 0730 this morning. Trade expecting upwards of 900K corn and 1.2 mmt of soybeans.

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