Grain markets are lower in overnight trading:
Corn – 1 cent/bu (Mar @ 3.76 )
Soybeans – ½ cent/bu (Jan @ 9.00 ¾ )
Chi Wheat – 2 ½ cents/bu (Mar @ 5.21 ¼ )
Cdn $ - 0.00025 (75.555 cents)
WTI Crude Oil -0.19/barrel (59.05)
Quiet overnight trade, again characterized by very narrow trading ranges. Markets are now waiting for evidence of further export demand and/or South American production estimates.
The USDA December Crop Report yesterday was non-eventful, as the government chose to keep most of it’s USA numbers and South American production numbers the same as in it’s November report. The only significant change in those numbers was the lowering of the USA 2019/20 total wheat carryover by 40 million bushels. In terms of world supply and demand numbers, again the report was not earth shattering, although with corn, the USDA raised Chinese corn production estimates by 6.8 million tonnes. That could cause some headwinds for those anticipating Chinese corn purchases as part of any trade deal.
No major news on the USA/China trade front overnight, although the “approval” of the new USMCA trade agreement dominated news discussions. That, and reactions to the Democrats well publicized decision to write Articles of Impeachment against President Trump. The next newsworthy event is likely to be tomorrow’s British election, which will dictate how Brexit proceeds. Prime Minister Boris Johnson called the snap election as a referendum on his negotiated withdrawal agreement from the European Union. Polling would suggest that his Conservative party is well poised to win the election and therefore proceed with the separation from the EU. The Wall Street Journal did report yesterday that the USA was prepared to “delay” the December 15th implementation of new import tariffs on Chinese goods – we’ll have to see if we get any confirmation one way or the other in coming days.
Look for any news regarding trade talks and/or Chinese grain purchases to drive market direction today.