Headlines:
- Macro markets and short-covering lift cereal futures
Short-sellers took profit, helping wheat and corn futures to trim losses at the end of a dismal week. Macro markets offered some gentle support to the bullish tone. The dollar is weakening, from admittedly heady levels, despite some better than expected US jobs data. The move is supportive for prices in New York and Chicago markets, as it improves US export prospects. And there is also support from crude oil, which shows no signs of trimming this week’s sharp gains, after Opec agreed to cut production. Although a touch below the previous session’s highs, front-month Brent Crude oil futures are otherwise at the highest level in over a year, at $54.13 a barrel.
- North Dakota D-Senator Heidi Heitkamp meets with President-elect Donald Trump and Vice President-elect Mike Pence
ND D-Senator Heidi Heitkamp met with President-elect Donald Trump and Vice President-elect Mike Pence today in New York, amid speculation that she is in the running for agriculture secretary. Heitkamp told Agri-Pulse that she intended to talk to Trump about the farm economy.
- ADM sells stake in top Australian grain handler, as big harvest looms
The agribusiness giant Archer Daniels Midland found a buyer for its stake in Australian grain handler GrainCorp, after being rebuffed from purchasing the whole business three years ago. UBS will take on ADM’s 19.9% stake in GrainCorp, for A$387m, or A$8.53 a share, ADM said. ADM’s made a bid for the whole of GrainCorp back in 2013, but was blocked by regulators over fears about foreign ownership. The deal comes as grain handlers gear up for a big wheat harvest, particularly in the east of the country. GrainCorp shares in Australia rose 1.8%, to $8.87. ADM shares in New York were down 0.1% in midday deals, at $44.25.
Summary:
Crude Oil’s pace of advanced slowed down a bit today but it was still trading higher on the day and was near the top of the day’s range when the grain market regular session had closed. It looks to haul in another 50-60 cents on the week setting up the largest weekly range and largest weekly price advance since the inception of this contract.
Soybean futures were flat yesterday and was only down 1 cent today. Sellers finally let up on Corn and Wheat today. March Corn was up 4.50 cents and March Wheat was up 8.75 cents. Yesterday was 1st notice for the Wheat December contract and it was particularly strong today on very light volume rising 16 cents. A lack of producer selling and short covering is largely believed to be the reason for the strength in Wheat and Corn. There is still some concern among the trade that spring purchase demand may shift from the US to South America possibly setting up a scenario where Beans rise into early to mid-January followed by some weakness.
